AerCap resumed with a Buy at Goldman Sachs

Goldman Sachs analyst Catherine O’Brien resumed coverage of AerCap (AER) with a Buy rating and $119 price target While AerCap’s net spread is lower than pre-pandemic levels, it stabilized in Q1 of 2024, the analyst tells investors in a research note. The firm expects the company’s net spread to expand in 2025 and beyond as lease mix improves on deliveries and pandemic-era leases begin to cycle off. This coupled with continued strong gains on sale, which continue to run significantly higher than historical levels, and further share repurchases drive expectations for 14% book value per share and 12% earnings growth, says Goldman.