Imperial Capital Upgrades Atlas Air Worldwide (AAWW) to Outperform

Imperial Capital upgraded Atlas Air Worldwide (NASDAQ: AAWW) from In-Line to Outperform with a price target of $65.00 (from $47.00).

Bob McAdoo commented, "First quarter operating results and improved management guidance suggest airfreight trends are showing meaningful signs of improvement. Demand for airfreight is being partially driven by significantly lower jet fuel prices, which make shipping cargo by aircraft more cost competitive vs. container ship or rail. In addition, interruptions at West Coast ports, due to ongoing labor disputes, are also helping drive demand for airfreight. Given changes in the composition of Atlas’s current fleet and business over the past several quarters, we believe the company is well positioned to be a beneficiary of more favorable industry trends. Our new $65 price target represents about 33% potential upside, based on the recent share price."

He added, "The composition of the current fleet and business has evolved in a way in which AAWW is now well positioned to take advantage of improving air freight demand. For the past couple of years, demand for air freight has remained at depressed levels, resulting in what arguably could be called surplus aircraft at Atlas. However, these surplus aircraft that could not be placed under long-term ACMI contracts were made available for charter service. Now, with demand for air freight improving, the company is seeing a meaningful uptick in demand for these charter aircraft, which carry higher
pricing than aircraft placed under long-term contract. In addition, the company has increased the amount of CMI flying, providing crews, maintenance, and insurance, but not the aircraft, for customers such as Boeing and DHL."

For an analyst ratings summary and ratings history on Atlas Air Worldwide click here. For more ratings news on Atlas Air Worldwide click here.

Shares of Atlas Air Worldwide closed at $48.74 yesterday.

You May Also Be Interested In

• Quest Diagnostics (DGX) PT Raised to $145 at Evercore ISI
• JetBlue Airways (JBLU) PT Lowered to $6 at TD Cowen
• Costco Wholesale (COST) PT Raised to $710 at Citi