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AerCap Holdings (AER) Trades Higher Following Positive Mention

July 13, 2015 11:03 AM EDT

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.



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