UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Aircastle Limited

In a report published Monday, Citigroup reiterated its Buy rating on Aircastle Limited

, and slightly raised its price target from $15.90 to $16.50. Citigroup noted, “Our target price is based on a total expected portfolio market value of $4.36bn as of end 2Q13, including c.$430m of net aircraft purchases. We assume 4% economic depreciation over the next year for passenger aircraft but 10% for cargo aircraft due to the current weakness of air freight. We then deduct expected net debt of $2.77bn and other net liabilities of c.$440m to arrive at net asset value of $1.15bn or $16.50/share after rounding. We note this is below BVPS, highlighting our impairment risk concerns. The main reason for the increase target price is a reduced share count due to recent re-purchase activity.” Aircastle Limited closed on Friday at $11.89.