In a report published Friday, Taglich Brothers analyst Howard Halpern reiterated a Speculative Buy rating and $24.50 price target on AeroCentury ACY.
In the report, Taglich Brothers noted, “Maintaining Speculative Buy and 12-month price target of $24.50. Current customers are stronger financially than in 2011 and 2012, when four customers filed for bankruptcy. Financial stability of ACY's customers, the key to future growth, has enabled ACY to diversify away from Europe into Asia and Africa since 2012. We project 34.5 aircraft/engines on lease for most of 2013, down from our prior forecast of 36. In 2014, we project an increase to 39 aircraft/engines on lease for most of the year, unchanged from our prior forecast. We anticipate extensions for the six leases set to expire through the end of 2013. 2Q13 lease revenue (reported on 8-6-13) decreased by 17.9% to $4.7 million. EPS decreased by $0.04 to $0.57 per share due to lower lease revenue, partly offset by a gain on disposable of aircraft of $1.9 million. Sales were $200,000 below our forecast but EPS was $0.22 above our forecast due to a larger than anticipated asset sale gain.”
AeroCentury closed on Thursday at $20.99.
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