Imperial Capital analyst, Michael Derchin, reiterated his Outperform rating on shares of Atlas Air Worldwide (NASDAQ: AAWW) and raised his price target to $76 from $74 ahead of 4Q18 earnings on 2/19.

The analyst believes Amazon (NASDAQ: AMZN) is in the early innings of developing its air freight business, and ATSG will likely be a critical partner for future growth and offered 3 key points:

1) its initial agreement with Amazon to operate 20 767s for its Prime Air at full run-rate

2) AAWW’s strong track record in the CMI business, which could lead to additional agreements with AMZN regardless of who takes on the capital risk

3) strong underlying demand and modest capacity growth in the express and e-commerce markets, with potentially modest exposure to cargo affected by tariffs

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 $52.89 yesterday.