Goldman Sachs Comments on Atlas Air Worldwide Holdings
Goldman Sachs commented on Atlas Air Worldwide Holdings (NASDAQ: AAWW) following the analysts day. In a research report published today, Goldman reiterated its positive outlook on Atlas. It also increased its earnings per share estimates for the next two years. The latest estimates put EPS at $5.45 for 2011 and $6.72 for 2012. Goldman left its rating unchanged at Neutral, however.
In the report, Goldman states, "The analyst day served to reinforce our positive view on air freight, given relatively tight freighter supply and our expectation for accelerating demand growth in 2H (driven by our semiconductor outlook). Our Neutral rating is a function of our more cautious view on longer-term defense spending/profitability and limited demonstrated demand for 747-8F aircraft at higher rates. In addition, we believe near-term stock upside could be limited given earnings that should be back-end loaded this year (45% of full year earnings should come in 4Q) as maintenance levels moderate and three 747-8Fs are (hopefully) delivered in 4Q2011."
At the moment, Goldman has a price target of $72 on Atlas. On Tuesday, Atlas lost 1.63% of its value to close the day at $61.41.
