Deutsche Bank Raises AerCap Target to $175, Cites Tight Supply-Demand
On February 10, Deutsche Bank lifted its price target on AerCap to $175 from $145 and maintained a Buy rating, citing benefits from tight supply-demand. AerCap posted Q4 revenue of $2.24B versus $2.12B consensus, delivered $819M gains on $3.9B asset sales, ordered 103 aircraft, and raised its dividend to $0.40.
1. Price Target Upgrade
On February 10, Deutsche Bank increased its price target on AerCap to $175 from $145 and reiterated a Buy rating, highlighting the company’s favorable positioning in a tight global jet leasing market.
2. Q4 Financial Results
AerCap reported fourth-quarter revenue of $2.24B, surpassing the $2.12B consensus, with record net income driven by $3.9B in asset sales that generated $819M of gains and 103 aircraft added to its order book.
3. Capital Returns and Dividend
The company executed $5.4B in asset purchases, returned $2.6B to shareholders, launched a new $1B share repurchase program, and increased its quarterly dividend to $0.40 per share.