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Investing.com - Deutsche Bank downgraded Air Lease Corp (NYSE:AL) from Buy to Hold and slightly lowered its price target to $65.00 from $66.00 following acquisition news. The stock has shown impressive momentum, with a 41% gain over the past six months and is currently trading near its 52-week high of $64.30. InvestingPro data reveals the company maintains strong financial health with a "GOOD" overall rating.
The rating change comes after Air Lease announced it will be acquired by a new Dublin-based holding company for $65 per share in cash, according to Deutsche Bank’s research note.
Air Lease stock closed at $64.28 following the acquisition news, representing just 1.1% potential upside to the deal price from current levels.
Deutsche Bank noted that even when factoring in expected dividends before the deal closes, the total return potential of approximately 1.8% to 2.1% is insufficient to maintain a Buy rating.
The acquisition is expected to close during the first half of 2026, according to the research note.
In other recent news, Air Lease Corporation announced a $7.4 billion acquisition deal led by Sumitomo Corporation, which will rebrand the company as Sumisho Air Lease Corporation upon expected closing in the first half of 2026. This acquisition includes a total valuation of $28.2 billion when accounting for debt. Despite the acquisition news, Air Lease reported mixed financial results for Q2 2025, with earnings per share falling short of expectations at $1.40 compared to the forecasted $1.79. However, the company exceeded revenue expectations, reporting $732 million against the anticipated $720.96 million. Fitch Ratings has maintained Air Lease’s Long-Term Issuer Default Rating at ’BBB’ but revised its outlook from stable to negative due to the acquisition. The rating action reflects concerns about the company’s future financial structure post-acquisition. The deal has garnered attention from investors, with the acquiring entity comprising Sumitomo Corporation, SMBC Aviation Capital Limited, and investment vehicles affiliated with Apollo and Brookfield.
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