Goldman Sachs analyst Catherine O’Brien reiterated a Buy rating on Aercap Holdings (AER – Research Report) yesterday and set a price target of $94.00.
Catherine O’Brien from Goldman Sachs has given her Buy rating to Aercap Holdings (AER) due to a range of factors contributing to a positive performance outlook for the company. Highlighted in her report is the robust demand for aviation assets, as evidenced by the company’s impressive sales margin of 24% for the third quarter, substantially higher than its historical average of approximately 10%. Additionally, Aercap has experienced significant demand for lease extensions, making up 80% of the company’s used aircraft lease agreement activity for the quarter. This surge in demand, O’Brien suggests, is largely due to a supply and demand disparity in the aviation assets market.
O’Brien further supports her Buy rating by noting the persistent delivery delays from Original Equipment Manufacturers (OEMs), a circumstance that is leading airlines to seek secondary market solutions, and generating increased interest from other potential buyers in AerCap’s fleet. Moreover, O’Brien has increased her estimate for the company’s FY 2023 EPS (excluding purchase accounting/insurance settlement) from $10.21 to $10.35. Alongside this, she has raised her 12-month price target for AER from $91 to $94, indicating a potential 58% upside to the last closing price, which further consolidates her Buy rating for the stock.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $80.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Aercap Holdings (AER) Company Description:
AerCap Holdings NV engages in aircraft leasing and aviation finance. It acquires new or used commercial aircrafts and lends them to its clients via operating leases. The firm also provides aircraft owners, financiers and investors with asset services to manage an aircraft portfolio. It operates through the Leasing, Financing, Sales, and Management of Commercial Aircraft and Engines segment. The company was founded in 1995 and is headquartered in Dublin, Ireland.
Read More on AER:
- AER Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- AerCap announces new lease agreement with Turkish Airlines
- 3 Best Stocks to Buy Now, 10/10/2023, According to Top Analysts
- AerCap announced major business transactions in Q3
- AerCap delivers first of eight new Airbus A321neo aircraft to Latam Airlines
