FBR Capital Reiterates an 'Outperform/Top Pick' on AerCap Holdings (AER); Announces Significant Sale Leaseback Transaction; Buyback Still Likely
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Price: $16.30 -0.18%
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 17 | New: 13
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 17 | New: 13
Trade AER Now!
FBR Capital reiterates an 'Outperform/Top Pick' on AerCap Holdings (NYSE: AER), PT
FBR analyst says, "We reiterate our rating and choice of AER as our Top Pick and would be aggressive buyers at current price levels following its announcement that it has executed an agreement with American Airlines to acquire up to 35 Boeing 737-800 aircraft via sale leaseback through 2014. While accretive to EPS (an estimated $0.01 accretive in FY11 and $0.07-$0.10 accretive in FY12), we view the transaction as important as it demonstrates that AER is able to grow its portfolio with desirable aircraft despite lacking a significant OEM order book. In addition, an industry news source reported that AerCap could be in the process of selling its AeroTurbine subsidiary for a reported price of $300M, providing a source of capital. We believe these announcements taken together address investors' primary concerns regarding the shares - lack of visible portfolio growth to drive EPS growth and absence of meaningful share repurchase authorization. With shares currently trading 0.85x its 1Q11 TBV of $14.92 and 0.60x the company’s appraised market value of about $21.00, we continue to believe AER is an attractively valued stock."
For more ratings news on AerCap Holdings click here and for the rating history of AerCap Holdings click here.
Shares of AerCap Holdings closed at $12.72 yesterday, with a 52 week range of $10.44-$15.99.
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FBR analyst says, "We reiterate our rating and choice of AER as our Top Pick and would be aggressive buyers at current price levels following its announcement that it has executed an agreement with American Airlines to acquire up to 35 Boeing 737-800 aircraft via sale leaseback through 2014. While accretive to EPS (an estimated $0.01 accretive in FY11 and $0.07-$0.10 accretive in FY12), we view the transaction as important as it demonstrates that AER is able to grow its portfolio with desirable aircraft despite lacking a significant OEM order book. In addition, an industry news source reported that AerCap could be in the process of selling its AeroTurbine subsidiary for a reported price of $300M, providing a source of capital. We believe these announcements taken together address investors' primary concerns regarding the shares - lack of visible portfolio growth to drive EPS growth and absence of meaningful share repurchase authorization. With shares currently trading 0.85x its 1Q11 TBV of $14.92 and 0.60x the company’s appraised market value of about $21.00, we continue to believe AER is an attractively valued stock."
For more ratings news on AerCap Holdings click here and for the rating history of AerCap Holdings click here.
Shares of AerCap Holdings closed at $12.72 yesterday, with a 52 week range of $10.44-$15.99.
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