AerCap Holdings NV (AER.N): Chart of the Day: Largest Lessor Offer Bullish Aerospace/Aftermarket Read-through

AerCap (AER) offered a positive outlook for the themes supporting aerospace and the aftermarket in particular. Gains contributed significantly to AER's 3Q26 beat, with AER selling ~$1.1bn of assets and booking $353m in gains, reflecting continued strength in the secondary aircraft market. Cynical investors call strong pro-cyclical data points "peak," but when the peak keeps setting new highs, Citi believes it simply reflects a cycle much stronger than bears believe. AER questioned bearish data points such as weaker lease rates, highlighted widebody demand as extraordinary, and noted that demand for aero-derivatives has begun to impact the market. Citi is an aerospace bull and sees AER as one of many ways to play the re-accelerating aerospace cycle in 2027. Citi's $185 base case target price uses a 1.3x P/BV and 9.4x P/E on 2028 EPS; risks include OEM delivery uncertainty, a global schedules downturn and geopolitical instability.