Aircraft Leasing

Aircastle take-out multiple highlights sector’s fair value discount

  • Sectors : Aircraft Leasing
  • Companies : avation | AerCap Holdings | Aircastle | Air lease


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
AerCap Holdings OUTPERFORM 27/06/17 N/A N/A 5987c
Air lease OUTPERFORM 01/11/19 N/A N/A 4624c
Aircastle NEUTRAL 01/11/19 N/A N/A 3227c
avation OUTPERFORM 01/11/19 N/A N/A 272.0p


The announcement yesterday (November 6th) that Aircastle is to be acquired for a c.1.17x multiple and at a 34% premium to its undisturbed price is further evidence of the sector’s attractiveness and discount to fair value. We view this as supportive to our other names under coverage, outlined in our recent report (“Aircraft leasing deep dive: expanding sector coverage”). Aircastle’s underlying Q3 trading performance was also broadly in line with expectations. Credit metrics improved in the quarter and there was positive placement activity, particularly with the E2 order.

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Nov 7 2019, 14:25 GMT