UPDATE: D.A. Davidson & Co. Initiates Coverage on Erickson Air-Crane
According to a research report published this morning, D.A. Davidson & Co. has initiated Erickson Air-Crane (NASDAQ: EAC) with a Buy rating and $10 PT.
In the report, D.A. Davidson & Co. commented, "The main catalyst for growth is the sale of additional AirCranes manufactured by the company. We estimate each additional sale contributes ~$30 million in sales and $10 million in operating income. Currently, the company has one Air-Crane under a non-binding letter of intent. We see the signing of additional deals and the building of a manufacturing backlog as a major catalyst for the stock. The market for the Air-Crane appears to be roughly 2-4 per year based on sales of a competing aircraft model."
Erickson Air-Crane is currently trading at $7.20.
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