AerCap price target raised to $125 from $105 at BofA

BofA analyst Ronald Epstein raised the firm’s price target on AerCap (AER) to $125 from $105 and keeps a Buy rating on the shares. The post-pandemic aircraft production ramp up and subsequent planemaker-specific challenges have caused a significant mismatch between supply of lift and demand for air travel, though the near-term organic growth opportunities for lessors are limited with a limited inflow of new aircraft, only about 15% of leases expiring every year, and the rising cost of debt, the analyst tells investors. In this context, “not every lessor is equally positioned to reap the near-term benefits,” argues the analyst, who views AerCap as better positioned than Air Lease (AL), which the firm double downgraded to Underperform from Buy.