Brokerages downgrade Air Lease amid $7.4 bln acquisition

Air Lease

03/09/2025 16:55

Updates

 ** Deutsche Bank and TD Cowen downgrade U.S.-based Air Lease Corp's AL.N stock rating to "hold" from "buy"

** On Tuesday, a group of investors led by Sumitomo Corp 8053.T and SMBC Aviation Capital unveiled plans to acquire AL in a $7.4 billion cash deal

** Deutsche Bank says implied stock upside (~1.8% to ~2.1%)at closing of deal in H1 2026 is not enough to warrant AL a "buy" rating; trims PT by $1 to $65

** TD Cowen says, "reducing our price target to $65

(from $67) as $65 represents the agreed takeout price."

** Air Lease shareholders will receive $65 in cash for each Class A common share, a 7.9% premium to Monday's closing price

** One brokerage rates AL "buy" and two "hold"; median PT is $65 - data compiled by LSEG

** Including Wednesday's session moves, AL is up nearly 32.5% YTD

 (Reporting by Akriti Shah and Aatreyee Dasgupta in Bengaluru)

 ((akriti.shah@thomsonreuters.com))