Wedbush Starts Erickson Air-Crane (EAC) at Outperform; Aircrane Sales Key to Upside

May 23, 2012 7:10 AM EDT
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Price: $0.15 --0%

Rating Summary:
    4 Buy, 3 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Wedbush initiates coverage on Erickson Air-Crane (NASDAQ: EAC) with an Outperform. PT $9.00.

Analyst, Kenneth Herbert, said, "Perhaps the most important near-term catalyst for EAC is the resolution of the contract with the Hellenic Fire Brigade in Greece. This contract, administered by NATO Maintenance and Supply Agency (NAMSA), is expected to cover the usage of three S-64s from 2012-2014, with annual expected revenues of $13-$14 million...We believe the biggest upside will come from the sale of an aircraft, which is difficult to predict from a timing and probability perspective - We estimate that the sale of one new Aircrane would contribute approximately $10 million in adjusted EBITDA and almost $0.40 in EPS. While not in our estimates, we believe the opportunity for an Aircrane sale represents a very favorable risk/reward profile."

For an analyst ratings summary and ratings history on Erickson Air-Crane click here. For more ratings news on Erickson Air-Crane click here.

Shares of Erickson Air-Crane closed at $6.90 yesterday.

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