UPDATE: Stifel Resumes Air Transport Services Group (ATSG) at Buy
- World stocks off record peak, dollar up on hawkish Fed official
- Moderna (MRNA) Tops Q2 Street Estimates, Nabs $4.2 Billion from 199 Million Sold Vaccines That Yielded 93% Efficacy Through Six Months
- Oil rises on Mideast tensions but virus concerns weigh
- Dollar holds gains after hawkish Fed comments
- Tesla (TSLA), Fisker (FSR) Gain as Biden Set to Sign Executive Order Targeting 50% EVs by 2030
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
(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."
Shares of Air Transport Services Group closed at $22.89 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- HubSpot Inc (HUBS) PT Raised to $725 at Morgan Stanley
- Needham Highlights Why They Would Buy Roku Inc. (ROKU) on Weakness
- Roku Inc. (ROKU) PT Lowered to $310 at Morgan Stanley
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesStifel, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!