Citi Reiterates Rating on Aercap Holdings

Citi has put out a report on Aercap Holdings NV

that adjusts earning models for the company. In the report, Citi writes, "In 2Q, AerCap purchased 2 aircraft and 8 engines, slightly less activity than we had previously expected, and closed the sale of its 50% share of a JV with Avolon in 3 new A330s on lease to Aeroflot purchased in 2010. As AerCap consolidated this JV, we would expect it to record the sale revenue and cost of goods sold (i.e. book value) less its partner's minority interest in the profit on disposal. We have assumed sale revenue of $240m, cost of goods sold of $232m and minority share of disposal profit of c.$3m after tax." The report also noted that the company has had less acquisition activity lately. Citi rated Aercap Holdings a BUY, though high risk, and assigned it a target price of $19.70. Aercap Holdings closed yesterday at $12.30.