UPDATE: DA Davidson Initiates Erickson Air-Crane Incorporated with Buy, $10 PT; Niche Aero Play
DA Davidson initiates its coverage on Erickson Air-Crane Incorporated with a Buy rating and a price target of $10 on shares.
DA Davidson comments, "The main catalyst for growth is the sale of additional Air-Cranes 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.
EAC closed at $7.02 on Friday.
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