Truist downgrades AerSale to Hold on ‘challenging’ marketplace

Truist downgraded AerSale (ASLE) to Hold from Buy with a price target of $6, down from $8. The firm says AerSale faces a “challenging and unpredictable” marketplace in terms of gaining access to used and serviceable material to drive aftermarket parts sales. Truist expects ongoing supply chain challenges to limit the production of new aircraft, resulting in fewer retirements. It cites a lack of visibility into used serviceable material sales, feedstock availability, and timing of AerAware adoption for the downgrade.