BofA Securities raises AerCap stock price target to $150 on supply constraints

Investing.com - BofA Securities raised its price target on AerCap Holdings (NYSE:AER) to $150 from $130 while maintaining a Buy rating on the aircraft leasing company. The new target represents about 14.5% upside from the current price of $131, with shares already delivering an impressive 40.88% return over the past year.

The price target increase reflects BofA’s view that AerCap is in "an enviable position" amid ongoing supply constraints affecting both engines and aircraft across the industry. This positive outlook aligns with InvestingPro data showing three analysts recently revising their earnings expectations upward for the upcoming period.

BofA highlighted that these supply constraints make AerCap’s high-quality portfolio and expertise in moving assets quickly and efficiently "extremely valuable" in the current market environment. The company’s impressive 62.45% gross profit margin and 22% return on equity underscore the strength of this portfolio.

The firm noted that AerCap’s excess cash provides flexibility for "opportunistic capital deployment opportunities," including share repurchases and accretive asset purchases. Indeed, InvestingPro identifies that management has been aggressively buying back shares, though the company operates with a significant debt burden with a debt-to-equity ratio of 2.43.

BofA Securities analyst Ronald J. Epstein reiterated the Buy rating on AerCap shares while implementing the 15.4% increase to the price target. The stock trades at an attractive P/E ratio of just 6.11, with InvestingPro’s comprehensive analysis showing the company’s overall financial health score as "GREAT." For deeper insights, check out the Pro Research Report available for AerCap, one of 1,400+ US equities covered in detail.

In other recent news, AerCap Holdings NV reported strong financial results for the third quarter of 2025, significantly exceeding earnings expectations. The company achieved an adjusted earnings per share (EPS) of $4.97, well above the projected $3.08. Although AerCap experienced a slight revenue shortfall, the company raised its full-year EPS guidance. This update reflects a positive outlook for AerCap’s financial performance. Analysts have taken note of these developments, with some firms likely to reassess their positions based on the company’s updated guidance. These recent developments highlight AerCap’s ability to surpass market expectations, which could influence investor sentiment.

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