WLFC - Willis Lease Finance: Upside Remains On Book Value

2024-03-26 11:47:01 ET

Summary

• Willis Lease Finance Corporation specializes in engine leasing and spare parts, providing solutions that minimize downtime for airplanes.
• The company saw revenue growth of 34.2%, driven by a growing pool of engines placed on lease and higher utilization.
• Valuation approaches suggest that the stock is undervalued, with a potential upside of 24% based on price-to-book and 35% based on EV/EBITDA.

I initiated coverage for Willis Lease Finance Corporation ( WLFC ) last year with a buy rating. However, the company’s share prices have only returned around 12% compared to the S&P 500 (SP500) returning 18.5%. I strongly believe that names related to aerospace and commercial airplanes should be able to post market outperforming returns....

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