UPDATE: Stifel Nicolaus Initiates Erickson Air-Crane with Buy, $12 PT; Unique Business Model

Stifel Nicolaus initiates its coverage on Erickson Air-Crane (NASDAQ: EAC) with a B uy rating and a price target of $12 a share.

Stifel Nicolaus comments, "We are initiating coverage of niche company Erickson Air-Crane with a Buy rating on the shares. We are establishing a target price of $12 based on an EV/2012E EBITDA multiple of about 6x, a level we believe is appropriate given the company's unique profile, seasonal variability in revenue and earnings, small size and small float, along with a lack of direct comparable companies because there are essentially no peers. If the company meets or exceeds our expectations, we would be pleased to review our valuation assumptions."

EAC closed at $7.02 on Friday.

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