Avation plc (LON:AVAP) is the topic of conversation when Canaccord Genuity’s Damian Brewer, Transport Research Analyst, caught up with DirectorsTalk to discuss their unaudited results for the year ended 30 June 2023.
Damian views the results as an inflexion point for Avation. He noted, “Fleet growth is resuming next year and utilisation is heading towards 100%”.
Avation is also in a strong position to benefit from the structural growth in the Aviation sector. Damian said, “Avation operates in a growing market which means more opportunities, and with limited fleet supply, that translates into likely better rates/values”.
In terms of potential share price drivers for the company’s UK Main Market listed stock, Damian commented, the key drivers will be “profit and NAV growth – more profits, less debt, more equity”. Damian added, “it has a 40%pts NAV discount gap to peers to close. Peers themselves are at 22% discount to NAV”.
Avation PLC (LON:AVAP) is a commercial passenger aircraft leasing company owning a fleet of aircraft which it leases to airlines across the world. Avation’s future focus are new technology low CO2 emission aircraft. Its current customers include easyJet, Eva Air, Philippine Airlines, Alliance Air India, Vietjet Air, Fiji Airways, Mandarin Airlines, Cebu Pacific, airBaltic and Danish Air Transport.
