Thursday, February 6, 2014

Seeking Alpha: Willis Lease Finance Looks Under-Followed And Undervalued

If what's good for the goose is good for the gander, perhaps what's good for aircraft leasing companies like AerCap (AER) and FLY Leasing (FLY) will prove to be good for engine lessor Willis Lease Finance (WLFC). Although there are some key differences in the markets and business models, a few basic points of similarity shine through - namely, that air travel (and aircraft demand) is set to grow meaningfully in the coming years and operators (that is, airlines) are likely to turn even more to leasing as a means of managing their capital.

Willis Lease is severely under-followed, as I do not believe there is a single sell-side firm following the company today, and both the float and liquidity are small. The shares also appear to be significantly undervalued, as both the book/market value and modified DCF approaches that I use suggest meaningful upside to today's price. On the coverage front, I would suggest readers also view the articles recently penned by Steven Reiman (here and here).

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Willis Lease Finance Looks Under-Followed And Undervalued

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