Jesup & Lamont Initiates Coverage on Air Transport Services Group (ATSG) with a Buy
ATSG Hot Sheet
Rating Summary:5 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 1
Jesup & Lamont initiates coverage on Air Transport Services Group (Nasdaq: ATSG) with a Buy rating.
Jesup analyst says, "We believe these shares can sell at 10x estimated 2010 EPS of $0.71, or $7.10 per share. We are estimating limited growth for next year because of changes in the DHL ACMI contract...ATSG is lessening its dependence on DHL, which now accounts for 67% of revenues, compared to 100% of revenues at the time of the spinoff from Airborne Express. DHL recently informed ATSG it was canceling the ACMI contract on August 15, 2010 in favor of a new contract, currently being negotiated. The termination of this contract is a potential overhang on the shares."
Air Transport Services Group, Inc., through its subsidiaries, provides air cargo transportation and related services in the United States.
Jesup analyst says, "We believe these shares can sell at 10x estimated 2010 EPS of $0.71, or $7.10 per share. We are estimating limited growth for next year because of changes in the DHL ACMI contract...ATSG is lessening its dependence on DHL, which now accounts for 67% of revenues, compared to 100% of revenues at the time of the spinoff from Airborne Express. DHL recently informed ATSG it was canceling the ACMI contract on August 15, 2010 in favor of a new contract, currently being negotiated. The termination of this contract is a potential overhang on the shares."
Air Transport Services Group, Inc., through its subsidiaries, provides air cargo transportation and related services in the United States.
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