Air Lease downgraded to Underperform from Buy at BofA

BofA downgraded Air Lease (AL) to Underperform from Buy with a price target of $50, down from $72. 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 (AER) as better positioned than Air Lease.