Wells: AER won't overpay for ILFC


There are too many "unknowns" on a potential AerCap (AER +4%) deal to buy ILFC (AIG +1%) to figure out what AER's balance sheet and income statement would look like afterwards, says Well Fargo's Gary Liebowitz, but based on the company's recent history, he pretty certain about a few things.

AER will NOT: 1) Overpay for aircraft 2) Subject itself to excessive residual value risk by retaining older jets 3) Impair its ability to sell aircraft, or 4) Expose itself to significant future funding risks.

He retains his Buy rating on AER with a price target of $26-$27.

Previous coverage of the potential deal

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Comments (1)
  • Stone Fox Capital
    , contributor
    Comments (10110) | Send Message
     
    agree with Wells, which is why I dumped my shares today. Don't see the deal actually getting done considering that AER won't overpay. The stock could gives up these 15% gains next week.
    13 Dec 2013, 03:37 PM Reply Like
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