Morgan Stanley Notes Air Lease Corp. Share Pullback Offers 'Interesting Entry Point'

In a report published Monday, Morgan Stanley analyst John Godyn noted that pullback in shares of

presents an "interesting entry point." The analyst remarked that the company is one of it "Top Growth Picks for 2014." Although shares of Air Lease are up roughly 26 percent year-to-date, Morgan Stanley reported that the stock is down approximately eight percent from recent highs. Godyn commented, "On the back of this short-term weakness, we reiterate the basis for the ‘Top Growth Pick' status we labeled AL with earlier this year." The analyst added that Air Lease is attractively valued amid the broader airline/ airspace coverage and is the cheapest of Morgan Stanley's top GARP picks. Godyn forecasts the company's fleet to grow towards the 270 range by 2015. Morgan Stanley continued, "AL benefits from a more aggressive growth profile than peers without sacrificing earnings resiliency – justifying the company's premium vs. lessors and arguing for a broader comp group which includes aerospace companies. Moreover, we reiterate our view that AL benefits from a number of unique advantages vs. peers including: (1) a well-articulated earnings growth strategy; (2) the youngest fleet of high quality assets, (3) a relatively conservative balance sheet with more debt capacity, and (4) opportunity for ROE expansion." Morgan Stanley reiterated an Overweight rating at $45.00 price target on Air Lease. The analyst holds a $3.00 2015 EPS estimate. Shares of Air Lease closed at $39.20 on Friday.