UPDATE: J.P. Morgan Initiates Bristow Group with Overweight Rating on Expanding Global Offshore Activity

In a report published Monday, J.P. Morgan analyst J. David Anderson initiated coverage on Bristow Group BRS with an Overweight rating and $77.00 price target. In the report, Anderson noted, “Bristow is a leading provider of helicopter transportation services to the offshore O&G industry, operating 275 aircrafts across all major offshore markets. With offshore development activity mounting, the offshore transportation secular trends appear strong, and we view Bristow as well positioned to take share with 48 aircraft being delivered by FY2017. While generally considered a cyclical industry, Bristow's strategy limits its flight hour sensitivity through fixed contract structures and focus on production facilities, major oil customers, and large aircrafts. To improve returns and free up cash returns to shareholders, Bristow plans to expand its leasing model to 30% of its fleet over the next several years.” Bristow Group closed on Friday at $63.32.