UPDATE: Bank of America Downgrades AerCap Holdings NV on Valuation

In a report published Wednesday, Bank of America analyst Glenn D. Engel downgraded the rating on

from Buy to Underperform, but raised the price target from $18.75 to $21.00. In the report, Bank of America noted, “AER stock price has climbed 57% YTD and is currently above our increased price objective ($21.00, up from $18.75). With AER now trading above book value and our estimate of net asset value, we downgrade AER to Underperform from Buy. Excluding derivatives, AER reported 3Q profits of $0.76 vs $0.47 a year ago, above our $0.64E on greater than expected end-of-lease net revenues. Still, ex-out-of-period gains/losses (sales gains, impairments, net end-of-lease), AER posted base EPS of $0.61 vs $0.52 and our $0.57E. We are raising our 2013E to $2.60 ($2.20-$2.25 ‘base' EPS) from $2.45, but maintain our 2014E of $2.45 ($2.30 “base” EPS).” AerCap Holdings NV closed on Tuesday at $21.56.