UPDATE: Oppenheimer Initiates Coverage on Erickson Air-Crane

According to a research report published this morning, Oppenheimer has initiated Erickson Air-Crane

with a Perform rating. In the report, Oppenheimer said, "EAC manufactures and operates the S-64/Aircrane, a heavy-lift helicopter with a 25,000 pounds lift capacity. Erickson generates most its revenue from leasing its 17 Aircranes for firefighting, timber harvesting, and infrastructure construction. S-64 parts and MRO services usually account for the balance of EAC's sales. Erickson also occasionally sells an Aircrane, an event that can boost annual revenue by ~16% and EBITDA by a third. Erickson's attractive valuation, migration to longer term contracts, and potential FCF windfall from Aircrane sales, have the makings of an attractive investment. While soft free cash flow conversion keeps us sidelined for now, we'd revisit our stance upon progress on that front." Erickson Air-Crane is currently trading at $7.20.