AerCap Holdings (AER) Trades Higher Following Positive Mention
Get Alerts AER Hot Sheet
Join SI Premium – FREE
AerCap Holdings (NYSE: AER) is positive Monday following a positive mention in Barron's over the weekend.
Barron's sees AerCap as a great way to play the global air travel boom over the next decade. The stock trades for about eight-times 2016 earnings, which are expected at $5.57 per share. Some see AerCap achieving $6 per share in 2016 and $7 the following year, meaning a $60-per-share valuation wouldn't be out of the question.
Shares of AerCap have been undervalued following a stock sales by AIG and as investors become concern with revenue in developing markets, where the company derives half of its revenue. There's also $30 billion of debt versus $8 billion of equity, meaning higher interest rates would be unfavorable for the company.
AerCap has a strong order book, mainly composed of Boeing 787s and Airbus A320neo and A321neo aircraft.
Air traffic is gaining at about 5.5 percent annually, versus aircraft growth of 4 percent, according to AerCap's CEO, which is a positive for the company and leasing industry as a whole.
Shares of AerCap are up 1.8 percent.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: RH, Estee Lauder rise; Tesla falls
- Deutsche adds Target (TGT) to Fresh Money List, sees 'at least 20% upside'
- Walgreens Boosts Alliance (WBA) PT Lowered to $19 at Jefferies
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!