UPDATE: Stifel Resumes Air Transport Services Group (ATSG) at Buy

June 21, 2021 4:13 PM EDT
Get Alerts ATSG Hot Sheet
Price: $24.90 --0%

Rating Summary:
    11 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 18 | New: 42
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(Updated - June 21, 2021 4:32 PM EDT)

Stifel analyst Frank Galanti resumes coverage on Air Transport Services Group (NASDAQ: ATSG) with a Buy rating abd $30 price target.

The analyst commented, "Air Transport Services Group is a leading lessor of medium-sized air cargo freighters (767s) and services surrounding that asset. With the recent pullback in shares, ATSG is now trading at a slight discount to its 7-year historical valuations. The reason it is not a 10-year valuation is that ATSG was shrinking its fleet as DHL exited the U.S. domestic market which justifiably kept valuations depressed. Today, with the very tight air cargo market, ATSG has been able to grow its fleet with long-term contracts. As a result, long after the spike in yield lasts (which should be a decent while), the company will continue to be benefiting from this market tightness. In addition, Amazon seems to have chosen a favorite 767 provider and it now owns 19.5% of ATSG. As a result, we expect ATSG to get the lion’s share of incremental Amazon 767 business. With relatively stable earnings thanks to long-term contracts and a growing customer that has no near-term interest in CMI operation, ATSG should continue its growth phase for years to come. On that basis, our $30 target price is based on 17x our 2022 EPS estimate and 6.6x our 2022 EBITDA estimate."

For an analyst ratings summary and ratings history on Air Transport Services Group click here. For more ratings news on Air Transport Services Group click here.

Shares of Air Transport Services Group closed at $22.89 yesterday.



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