Aircraft Leasing - Aircastle take-out multiple highlights sector’s fair value discount

Davy Research
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The announcement yesterday (November 6th) that Aircastle is to be acquired for a c.1.17x multiple and at a 34% premium to its undisturbed price is further evidence of the sector’s attractiveness and discount to fair value. We view this as supportive to our other names under coverage, outlined in our recent report (“Aircraft leasing deep dive: expanding sector coverage”). Aircastle’s underlying Q3 trading performance was also broadly in line with expectations. Credit metrics improved in the quarter and there was positive placement activity, particularly with the E2 order.