In a report released yesterday, Moshe Orenbuch from TD Cowen maintained a Hold rating on Air Lease, with a price target of $65.00.
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Moshe Orenbuch has given his Hold rating due to a combination of factors impacting Air Lease’s financial performance. The company’s recent earnings report revealed a lower-than-expected diluted EPS of $0.84, missing the analyst’s estimate of $0.98. This shortfall was primarily due to reduced aircraft sales and trading revenue, as well as lower maintenance revenue, which were only partially offset by decreased depreciation and SG&A expenses.
Despite the challenges, Air Lease showed some positive signs, such as an improvement in lease yield and a solid core lease rental revenue. However, the company’s total revenue of $725 million fell short of the $750 million estimate, mainly due to weaker aircraft and maintenance revenues. Additionally, while expenses were slightly better than anticipated, the rising interest expense and constraints on new debt issuance before the merger present ongoing financial challenges. These mixed results and uncertainties underpin the Hold rating, as the company navigates through these financial dynamics.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AL in relation to earlier this year.