FBR Capital Reiterates an 'Outperform' on Aircastle Limited (AYR); Core Trends In Line; Outlook Remains Positive
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Price: $32.01 --0%
Rating Summary:
5 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
5 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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FBR Capital reiterates an 'Outperform' on Aircastle Limited (NYSE: AYR), raises PT from $14 to $15.
FBR analyst says, "We expect aircraft lessors to experience increasing demand for their aircraft, driven by two factors: (1) increasing global passenger and cargo volumes; and (2) aircraft leasing continues to comprise a larger portion of total airline fleets, reflecting the financial benefits airlines gain from leasing (reduces capital and liquidity resources, residual risk is incurred by the lessor, etc.). With regard to Aircastle, while older average age of the fleet does contain more risk in an environment of sustained high oil prices, long-term leases and high utilization rates give us confidence that the risk is manageable. In addition, despite the 10+ year average age of the portfolio, 92% of the portfolio is composed of latest-generation aircraft. In addition, demand continues to grow for freighters, giving Aircastle an advantage over most of its competitors, who tend not to operate in that segment."
"We increase our FY11 EPS estimate from $0.91 to $1.17 and FY12 EPS from $1.10 to $1.21, primarily due to lower projected expenses."
For more ratings news on Aircastle Limited click here and for the rating history of Aircastle Limited click here.
Shares of Aircastle Limited closed at $12.56 yesterday.
FBR analyst says, "We expect aircraft lessors to experience increasing demand for their aircraft, driven by two factors: (1) increasing global passenger and cargo volumes; and (2) aircraft leasing continues to comprise a larger portion of total airline fleets, reflecting the financial benefits airlines gain from leasing (reduces capital and liquidity resources, residual risk is incurred by the lessor, etc.). With regard to Aircastle, while older average age of the fleet does contain more risk in an environment of sustained high oil prices, long-term leases and high utilization rates give us confidence that the risk is manageable. In addition, despite the 10+ year average age of the portfolio, 92% of the portfolio is composed of latest-generation aircraft. In addition, demand continues to grow for freighters, giving Aircastle an advantage over most of its competitors, who tend not to operate in that segment."
"We increase our FY11 EPS estimate from $0.91 to $1.17 and FY12 EPS from $1.10 to $1.21, primarily due to lower projected expenses."
For more ratings news on Aircastle Limited click here and for the rating history of Aircastle Limited click here.
Shares of Aircastle Limited closed at $12.56 yesterday.
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