AerSale: Increasing The Price Target Despite AerAware Challenges
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AerSale's Q3 sales fell by 10.6%, but margins improved. The company is expanding MRO capacity, expected to boost EBITDA by $50 million annually. Despite AerAware commercialization challenges, AerSale focuses on MRO growth and disciplined asset acquisition. The price target is increased to $8.17, driven by $70 million in insurance claims, despite reduced EBITDA and free cash flow estimates for 2025 and 2026.
November 13, 2024 | 6:30 pm
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AerSale's Q3 sales decreased by 10.6%, but margin improvements and MRO capacity expansion are expected to enhance EBITDA by $50 million annually. Despite AerAware challenges, the price target is raised to $8.17 due to $70 million in insurance claims.
The increase in price target to $8.17, despite sales decline, is driven by improved margins, MRO expansion, and significant insurance claims. These factors are likely to positively impact ASLE's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100