Citi reiterates Buy rating on Air Lease stock, maintains $68 price target

Published 08/07/2025, 15:26
Citi reiterates Buy rating on Air Lease stock, maintains $68 price target

Investing.com - Citi has reaffirmed its Buy rating on Air Lease Corp (NYSE:AL) with a price target of $68.00, following the company’s second-quarter activities report. The stock, currently trading near its 52-week high of $60.41, has shown impressive momentum with a 26% return over the past six months.

The investment bank described Air Lease’s quarterly report as "modestly positive," noting that the company’s fleet scale and implied lease revenue aligned with Citi’s expectations.

Citi observed that proceeds from insurance claims were slightly better than anticipated, though net fleet investment came in higher than the bank had projected.

The higher net fleet investment could potentially lead to increased net interest expense for the aircraft leasing company, according to the bank’s analysis.

Despite this concern, Citi stated it "remains constructive on overall aircraft leasing trend lines at this juncture," supporting its decision to maintain the Buy rating on Air Lease stock. Trading at a P/E ratio of 10.32, the stock has attracted varied analyst targets ranging from $50 to $69. Get deeper insights and access to 14 additional exclusive InvestingPro Tips for Air Lease Corp.

In other recent news, Air Lease Corporation reported a significant net benefit of $344 million from insurance settlements related to its former Russian fleet during the second quarter of 2025. The company also delivered 12 new aircraft and made aircraft investments totaling approximately $890 million. In a separate announcement, Air Lease disclosed it had recovered $112.4 million in insurance proceeds for aircraft detained in Russia, adding to previous settlements and bringing the total recovery to $763.5 million. Analyst firms have responded to these developments, with Citi upgrading Air Lease’s stock rating from Neutral to Buy and raising the price target from $45 to $68, citing a new capital allocation strategy. TD Cowen also raised its price target for Air Lease to $55, maintaining a Buy rating after the company reported earnings that surpassed expectations, with an EPS of $0.89 excluding Russia recovery. Air Lease’s revenue from aircraft sales and trading reached $93 million, significantly higher than anticipated, while lease revenue was slightly above forecasts. Despite higher-than-expected expenses due to administrative and retirement-related costs, the company’s financial performance was viewed positively by analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.