UPDATE: Cowen Securities Raises PT on Bristow Group on SAR Contract Win

Cowen analysts James Crandell published a report on Bristow Group

that reiterated its Buy rating and raised the price target from $70 to $72. Cowen reported that, “Over the weekend, The British Sunday Times announced that Bristow Group is expected to be awarded the £3B UK Search and Rescue contract. The 13-year contract was being bid on in three parts. The north contract is for 10 aircraft; the south is for 12, and a combined north-and-south contract if one bidder is awarded both contracts. The Department of Transport is expected to officially announce the decision possibly as early as this week. Our expectation was that the company would be awarded the north or south contract, but not both. The value of the combined contract (north and south) was estimated to be £2-3B. Based on the contract size of £3B reported by the press, we assume Bristow is expected to be awarded the entire contract, which would privatize the remaining 18 bases in the UK. Four are currently private. The contract will begin in 2016, when it is expected to contribute substantially to cash flow.” Shares of Bristow Group closed at $60.95 on Friday.