Truist Securities downgrades Aersale stock to Hold on supply chain concerns

Published 11/07/2025, 14:46
Truist Securities downgrades Aersale stock to Hold on supply chain concerns

Investing.com - Truist Securities downgraded Aersale (NASDAQ:ASLE) from Buy to Hold on Friday, while lowering its price target to $6.00 from $8.00, citing ongoing challenges in the used serviceable material (USM) marketplace. The stock currently trades at $5.76, and according to InvestingPro data, the company appears undervalued despite trading at a high EV/EBITDA multiple of 27x.

The research firm cut its earnings per share estimates for 2025 and 2026 to $0.20 and $0.47, respectively, down from previous forecasts of $0.42 and $0.77, as Aersale continues to face difficulties accessing used and serviceable material needed for aftermarket parts sales. InvestingPro data shows the company was not profitable in the last twelve months, with revenue declining by 7.63%.

Truist Securities noted that persistent supply chain challenges limiting new aircraft production are resulting in fewer aircraft retirements, creating pressure on the USM marketplace and driving volatility in Aersale’s whole asset sales operations.

The firm also expressed uncertainty about the adoption timeline and revenue potential for Aersale’s AerAware product, stating that while it models for material product revenue growth in 2026, it has "little confidence" in these projections.

For 2025, Truist Securities expects Aersale’s revenues to decline 0.4% year-over-year, contrasting sharply with commercial aerospace aftermarket peers that are projected to see revenue growth in the teens range. Despite these challenges, InvestingPro analysts expect the company to return to profitability this year. Get the full analysis and 8 additional ProTips with an InvestingPro subscription, including exclusive access to the comprehensive Pro Research Report covering ASLE’s detailed financial health metrics and growth prospects.

In other recent news, AerSale Corporation reported its Q1 2025 earnings, which fell short of analyst expectations. The company posted a net loss of $5.3 million, contrasting with a net income of $6.3 million in the same quarter last year. Revenue for the quarter was $65.8 million, significantly below the forecasted $99.52 million and down from $90.5 million in Q1 2024. AerSale’s earnings per share were -$0.05, missing the anticipated $0.09. Despite these challenges, the company remains optimistic about incremental improvements in future quarters and expects full-year sales growth. The firm anticipates that its EBITDA growth will outpace revenue increases, focusing on expanding USM sales and enhancing MRO service offerings. AerSale’s management has highlighted strong demand across engine types and is actively pursuing opportunities to monetize its feedstock investments.

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.