Air Lease (AL) was a stock I had highlighted as one that I wanted to look into further. It was part of my initial list of stocks for analyses for 2016 Fall.
- Currently it has a price target of $73 USD dollars and it is currently trading at around $29.74 dollars. That is a very attractive gain forecast – It will provide a return of 145%. The target price is obtained from subscribed research reports. Yahoo has a target price of $42.27 which gives us about 42 % return.
- It has a buy rating from 3 analysts and strong buy from 4 analysts
- Recently an aircraft lessor was sold to another aircraft lessor at a multiple of 1.2x the book value. The current valuation of AL is less than that multiple – which means it has a good chance for going up.
- According to research reports the company has a strong management team. Its leverage is below that of its peers and ROE above its peers.
- Since it is an airline lease company its performance is tied to the demand for air travel. I don’t see any risks for that decreasing unless we have a wide spread economic downturn.
- This is a highly recommended stock by our analysts, and the reasons for the recommendations are logical.
Based on all the research, I have very high hopes for the performance of this stock and am choosing this for my portfolio.