UPDATE: JPMorgan Upgrades CHC Group (HELI) to Overweight; Analyst Doesn't Believe Covenants Are at Risk
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Price: $3.67 --0%
Rating Summary:
5 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
Rating Summary:
5 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
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(Updated - March 20, 2014 12:46 PM EDT)
JPMorgan upgraded CHC Group (NYSE: HELI) from Neutral to Overweight with a price target of $12.00 (unchanged). Analyst J. David Anderson doesn't believe covenants are at risk.
"We believe CHC provides an attractive risk/reward opportunity as CHC shares have traded off and concerns about pricing and covenants have proven to be misguided. After conducting further diligence, we now believe CHC has more flexibility in its covenants than we initially understood, increasing our confidence that covenants aren't at risk barring a material market downturn," said Anderson.
"Additionally, we believe there is less risk to our FY2015 estimates from pricing pressure as fleet mix and cost escalators will continue to drive HE rate expansion, which, coupled with cost and efficiency initiatives, should help CHC reach its 300bp targeted margin expansion over the next three years," he added.
For an analyst ratings summary and ratings history on CHC Group click here. For more ratings news on CHC Group click here.
Shares of CHC Group closed at $8.40 yesterday.
JPMorgan upgraded CHC Group (NYSE: HELI) from Neutral to Overweight with a price target of $12.00 (unchanged). Analyst J. David Anderson doesn't believe covenants are at risk.
"We believe CHC provides an attractive risk/reward opportunity as CHC shares have traded off and concerns about pricing and covenants have proven to be misguided. After conducting further diligence, we now believe CHC has more flexibility in its covenants than we initially understood, increasing our confidence that covenants aren't at risk barring a material market downturn," said Anderson.
"Additionally, we believe there is less risk to our FY2015 estimates from pricing pressure as fleet mix and cost escalators will continue to drive HE rate expansion, which, coupled with cost and efficiency initiatives, should help CHC reach its 300bp targeted margin expansion over the next three years," he added.
For an analyst ratings summary and ratings history on CHC Group click here. For more ratings news on CHC Group click here.
Shares of CHC Group closed at $8.40 yesterday.
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