UPDATE: Imperial Capital Initiates Coverage on Air Transport Services Ahead of Expected Greater Returns

In a report published Thursday, Imperial Capital analyst Bob McAdoo initiated coverage on

with an Outperform rating and $9.00 price target. In the report, Imperial Capital noted, “We are initiating coverage of ATSG with an Outperform rating and a one-year price target of $9, some 41% above the recent closing price. ATSG shares are attractive, with our forecast FCF yield of over 16% and net debt only 2.2 times EBITDA. ATSG continues to generate profits and free cash flow despite having 6 of its 57 aircraft unassigned and generally available for growth. With 6 of its 57 aircraft idle, and its ROE at 13.7%, ATSG should be able to generate even greater returns should the economy strengthen and worldwide the demand for cargo services increase.” Air Transport Services Group closed on Wednesday at $6.37.