Erickson (EAC) received a buy investment rating Friday from BWS Financial, which initiated coverage of the heavy-lift-helicopter maker with a $33 price target.
The firm noted Erickson has a near monopoly on the heavy-lifting capabilities of the S-64 Aircrane. Meanwhile, two acquisitions the company made in 2013 “change the earnings profile for EAC,” the firm said, adding “the acquisition of Evergreen gave EAC access to 60 helicopters, of which 30 were idle. Putting this fleet back into operation is incremental upside for EAC.”
Also, EAC is diversifying into South American oil and gas industry and has started to generate contracts, BWS noted.
Still, “EAC trades at a cheap valuation to its earnings profile and the cash flow it could generate over the next 12
months,” the firm said. Its 12-month price target of $33 implies expectations for the stock to more than double from its Thursday closing price of $15.56. EAC has a 52-week range of $14.10 to $21.94 and was inactive in recent pre-market trading.