As previously reported, JPMorgan analyst Jamie Baker downgraded Aircastle (AYR) to Underweight from Neutral with a $26 price target, up from $24.50. His revised earnings forecasts don't differ materially from consensus, but his rolled-forward valuation leaves limited upside potential, especially in comparison to returns he projects elsewhere in the sector, Baker tells investors. However, Baker adds that Pacific Life Insurance Company's agreement to sell its majority stake in Aviation Capital Group to Tokyo Century has renewed interest in the Aircraft Leasing space and "further consolidation in the sector could prove this downgrade premature."