Bank of America Reiterates Underperform Rating, $10 PT on FLY Leasing on End-Of-Lease Revenues

In a report published Friday, Bank of America reiterated its Underperform rating and $10.00 price target on FLY Leasing Ltd. FLY. Bank of America noted, “FLY offers a high dividend yield but trades at a premium to the sector on most valuation metrics and meaningful premium to our estimate of net asset value. FLY has greatest exposure to middle-age, narrow-body aircraft, which are most at risk in our view owing to excess supply. FLY has more financial risk than its peers (higher leverage with sizable current debt maturities), and we believe FLY has greater near-term earnings risk because of its high percentage of leases expiring in 2012-2013.” FLY Leasing Ltd. closed on Thursday at $14.60.