AerCap Holdings (AER): Valuation Insights Following Major GE Aerospace Engine Leasing Deal

AerCap Holdings (NYSE:AER) just announced a seven-year agreement with GE Aerospace to manage lease pool services for the GE9X engine, as well as extend support for several other GE engines. This move could solidify AerCap’s standing in engine leasing and bolster recurring revenue streams as the GE9X enters service.

See our latest analysis for AerCap Holdings.

Shares of AerCap Holdings are up nearly 27% so far this year, reflecting building momentum as investors take notice of the company’s expanding footprint in engine leasing and strategic partnerships, such as the latest GE Aerospace deal. Backed by a one-year total shareholder return of 29% and standout 3- and 5-year gains, the stock’s long-term track record signals robust growth potential even as the business landscape evolves.

If developments in aviation and leasing spark your interest, you might want to see what’s happening across the sector with our curated See the full list for free..

Yet with shares rallying and recent deals highlighting AerCap’s scale, investors have to wonder: is the current price a bargain reflecting hidden value, or is the market already anticipating more upside ahead?

Most Popular Narrative: 8.4% Undervalued

With AerCap’s fair value estimate sitting nearly 8.4% above its current share price, the most widely-followed narrative suggests room for gains if its foundational assumptions hold up.

Expansion of ancillary services, particularly AerCap's spare engine leasing and new engine/MRO partnerships such as the Air France-KLM JV, diversify revenue sources and add higher-margin income streams, positively impacting overall earnings growth.

Read the complete narrative.

Curious what’s fueling this bullish narrative? One pivotal ingredient is a profit outlook that defies recent industry trends. Another centers on head-turning assumptions about how AerCap’s bottom line will evolve. Which makes the math so striking? Crack open the full story to uncover the surprising forecasts that underpin that valuation.

Result: Fair Value of $133.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if aircraft oversupply emerges or AerCap’s biggest airline clients face distress, the bullish valuation thesis could quickly unravel.

Find out about the key risks to this AerCap Holdings narrative.

Build Your Own AerCap Holdings Narrative

If you want to question these conclusions or dig into the numbers on your own terms, you can craft your own narrative in just a few minutes, then Do it your way.

A great starting point for your AerCap Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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