Analyst Moshe Orenbuch of TD Cowen maintained a Buy rating on Aercap Holdings (AER – Research Report), retaining the price target of $130.00.
Moshe Orenbuch has given his Buy rating due to a combination of factors that suggest a favorable outlook for Aercap Holdings. The global demand for commercial aircraft is strong, surpassing pre-pandemic levels, while supply remains constrained due to production shortfalls from major manufacturers like Airbus and Boeing. This imbalance is expected to persist, potentially driving up lease rates and aircraft values, which aligns well with Aercap’s strategy of aircraft sales and stock buybacks.
Additionally, Aercap’s financial position is robust, with capital levels significantly above target, enabling the company to authorize a substantial stock buyback that could enhance earnings per share. The company’s valuation, although slightly above historical levels, is justified by its strong return on market value and relatively low price-to-earnings ratio compared to industry peers. Furthermore, potential recoveries from Russian-related claims and the sustained demand-supply imbalance in the aircraft market are factors that may not be fully appreciated by investors, providing additional upside potential.
In another report released on March 7, Bank of America Securities also maintained a Buy rating on the stock with a $125.00 price target.
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