Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com -- Deutsche Bank downgraded Air Lease Corp to Hold from Buy after the aircraft lessor agreed to be acquired by a new Dublin-based holding company for $65 per share in cash.
The stock is currently trading at $64.09 leaving limited upside to the deal price. Including expected dividends before the transaction closes in the first half of 2026, Deutsche Bank estimated total potential returns of 1.8% to 2.1%, not enough to justify a Buy rating.
The brokerage cut its price target to $65 from $66 to reflect the offer.
The acquiring entity, to be named Sumisho Air Lease Corporation, will be owned by Sumitomo Corp with a 37.5% stake, SMBC Aviation Capital at 25%, and Apollo and Brookfield with 18.75% each.
The new company will remain separate from SMBC Aviation, the deal will bring Air Lease’s fleet under the same umbrella by calling for SMBC to manage the new assets, putting it on a rung close to industry leader AerCap.
After the deal closes, SMBC will take over Air Lease’s aircraft order book and act as asset servicer for most of the fleet.