UPDATE: Albany International Initiated with Buy at Stifel Nicolaus on Sole Source Supplier Position

In a report published by Stifel Nicolaus, analyst Stephen E. Levenson initiated coverage on Albany International (NYSE: AIN) with a Buy rating and $38.00 price target.In the report, Stifel Nicolaus wrote, "We think the best of times is coming for the Albany Engineered Composites (AEC) segment, primarily because of its sole source supplier position for the composite cold-section fan blades and fan case for the LEAP family of jet engines that have already been selected to power the majority of next generation single-aisle airplanes, the workhorses of the global commercial airplane fleet. The days of strong revenue growth for the Machine Clothing (MC) business are likely over, but as the undisputed market leader in the mature paper industry supplying critical consumable products, we think the ability to maintain operating margin of about 25% with minimal future capital investment is possible. The operation is a strong cash flow generator that should provide the financial horsepower to build AEC to record levels rapidly."Shares of Albany International closed on Wednesday at $27.83.