Air Lease downgraded to Sell at UBS

|About: Air Lease Corp (AL)|By:, SA News Editor

Air Lease (AL -0.5%) is downgraded to Sell from Neutral with a $37 price target at UBS, as the stock has run up ~20% since January while firm is increasingly concerned that all-time high net interest margins and trading gains may start to drift lower soon.

UBS thinks accelerating competitive growth eats into the net interest margins and that introduction of new aircraft models is likely to hit residual values on the current generation aircraft that constitute 90%-plus of the lessors' portfolios.

While concerns apply to all the lessors, the firm sees the most downside with AL since it is the most expensive on each valuation metrics it tracks.

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