Air Lease, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Ronald Epstein from Bank of America Securities maintained a Sell rating on the stock and has a $50.00 price target.
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Ronald Epstein has given his Sell rating due to a combination of factors impacting Air Lease’s financial performance and outlook. Despite the company reporting a higher-than-expected adjusted EPS, primarily driven by increased rental revenues and fleet growth, there are underlying concerns that justify a cautious stance.
One significant factor is the decline in Aircraft Sales, Trading, & Other revenue, which fell by 8% year-over-year due to reduced sales volumes. Additionally, the company’s adjusted return on equity (ROE) decreased to 9.0% from 10.8% in the previous year, indicating a potential weakening in profitability. Furthermore, the net debt to equity ratio remains high at 262.0%, which could pose financial risks. These elements, combined with a current stock price that exceeds the price objective, contribute to the Sell rating.