Credit Suisse Believes AER Still Has Room to Grow

By Ryan Adsit

In a report released yesterday, Moshe Orenbuch from Credit Suisse reiterated a Buy rating on Aercap Holdings (NYSE: AER), with a price target of $55. The company’s shares opened today at $44.04, close to its 52-week high of $46.32.

Orenbuch commented:

“We believe share repurchases will be greater if they can sell large portfolios of mid-life aircraft. Demand for mid-life has been supported by the strong financing environment. Later in ’17 and ’18, the company will steer more resources towards investing in the fleet, generating revenue and earnings.”

According to, Orenbuch is a 5-star analyst with an average return of 7.4% and a 70.9% success rate. Orenbuch covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp., and Santander Consumer USA.

Currently, the analyst consensus on Aercap Holdings is Strong Buy and the average price target is $53.33, representing a 21.1% upside.

In a report issued on November 14, FBR Capital also upgraded the stock to Buy with a $53 price target.

Aercap Holdings’ market cap is currently $8B and has a P/E ratio of 8.88. The company has a book value ratio of 0.9563.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is neutral on the stock. Most recently, in September 2016, Michael Gradon, a Director at AER sold 592 shares for a total of $24,023.

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. It 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.