Citi upgraded Air Lease (AL, Financials) to Buy from Neutral and raised its price target to $68 from $45, citing a shift in capital strategy focused on shareholder returns.

Warning! GuruFocus has detected 12 Warning Signs with AL.

The company is moving away from organic aircraft purchases toward buybacks and acquisitions, similar to peers like AerCap. The stock, trading near its 52-week high of $57.80, has a price-to-earnings ratio of 9.2 and a market capitalization of $6.4 billion.

First-quarter 2025 earnings beat expectations, with EPS at $1.51 versus $0.89 and revenue at $738 million. Aircraft sales and trading contributed $93 million in revenue, above the $72 million forecast. A $17 million retirement payout to Executive Chairman Steven Udvar-Hazy increased expenses but did not impact analyst sentiment.

TD Cowen raised its price target to $55 and maintained a Buy rating. Air Lease plans $3 billion to $3.5 billion in aircraft deliveries in 2025 as lease rates rise with global travel demand.

This article first appeared on GuruFocus.

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