Argus Research Initiates Equity Research Report Coverage on Bristow Group Inc. (NYSE:VTOL)

Rhea-AI Summary

Argus Research has officially initiated coverage on Bristow Group Inc. (NYSE:VTOL), a key player in offshore energy and government services transportation, on April 10, 2023. The report highlights Bristow's potential benefits from increased utilization of its fleet of 227 aircraft amid the growing offshore drilling activities. Notably, the Government Services segment's expansion is set to enhance adjusted EBITDA, significantly underappreciated by the market. Recent contract wins with the U.K. Maritime and Coastguard Agency and the acquisition of British International Helicopter Services further solidify its position. As of December 31, 2022, Bristow reported a net liquidity of $240 million and has a fair value estimate of $33 per share, indicating strong upside potential against current trading levels.

Positive

• Increased utilization of 227 aircraft expected as offshore drilling expands.
• Expansion of Government Services segment likely to boost adjusted EBITDA.
• Recent contract wins with U.K. Maritime and Coastguard Agency and Netherlands Coast Guard.
• Acquisition of British International Helicopter Services enhances service offerings.
• Strong net liquidity of $240 million as of December 31, 2022.
• Valuation suggests a fair value of $33 per share, above current levels.

Negative

• Bristow shares have exhibited volatility, trading between $21.60 and $40.10 since early 2022, currently near the lower end.

NEW YORK, April 10, 2023 /PRNewswire/ -- Argus Research, an independent investment research firm, has launched Equity Research Report coverage on Bristow Group Inc. (NYSE:VTOL)

Click Here to view full Argus Equity Research Report.

COMPANY HIGHLIGHTS: Excerpts (as conveyed by Argus Analyst Steve Silver) include:

VTOL: A Leader in Offshore Energy and Government Services Transportation

• We expect Bristow to benefit from the increased utilization of its fleet of 227 aircraft as energy companies expand offshore drilling.
• We also like the recent expansion of the Government Services segment given its long-duration contracts and high percentage of fixed-rate revenues. We expect this expansion to boost adjusted EBITDA and believe that it is underappreciated by investors.
• The company has recently won new contracts with the U.K. Maritime and Coastguard Agency (MCA) and the Netherlands Coast Guard. It has also acquired British International Helicopter Services, which provides search and rescue and support helicopter services for the UK Ministry of Defence.
• As of December 31, 2022, Bristow had net liquidity of $240 million and a trailing 12-month net debt/adjusted EBITDA ratio of 2.7. We believe that adjusted EBITDA and free cash flow will be sufficient to meet the company's capital requirements, including acquisitions.
• Bristow shares have been volatile since the beginning of 2022, trading in a range of $21.60-$40.10. They are currently near the low end of this range, despite the company's multiple new contract wins and higher EBITDA guidance.
• Based on our valuation analysis, we arrive at a fair value estimate for VTOL of $33 per share, well above current levels.

INVESTMENT THESIS: Click Here to view full Argus Equity Research Report and Investment Thesis.

About Bristow Group Inc. (NYSE:VTOL)

Bristow Group Inc. is the leading global provider of innovative and sustainable vertical flight solutions. Bristow primarily provides aviation services to a broad base of offshore energy companies and government entities. The Company's aviation services include personnel transportation, search and rescue ("SAR"), medevac, fixed wing transportation, unmanned systems, and ad-hoc helicopter services. 

For additional information concerning Bristow please contact Jennifer Whalen at InvestorRelations@bristowgroup.com, (713) 369-4636 or visit Bristow Group's website at http://ir.bristowgroup.com/

About Argus Research Corp. 

Headquartered in NYC, Argus Research (www.argusresearch.com) is a leading independent equity research firm (est. 1934)  ̶  providing fundamental and quantitative research coverage on more than 1,600 companies across all 11 sectors of the S&P 500, as well as macroeconomic and equity market forecasts, thematic research, model portfolios and IPO research. In addition, Argus has recently committed to providing a sponsored research solution for small & mid-cap companies seeking coverage. Argus's Equity Research & earnings estimates are available on major research / earnings estimate aggregator platforms, including Bloomberg, Thomson Reuters, Factset and S&P Global.

For more Information please contact:

Darrell Stone
646-747-5438
dstone@argusresearch.com   

Argus Research Co. has received a flat fee from the company discussed in this report as part of a Sponsored Research agreement between Argus and the company. No part of Argus Research's compensation is directly or indirectly related to the content of this assessment or to other opinions expressed in this report. Please refer to the full Argus report and the disclaimer for complete disclosures.

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SOURCE Argus Research

FAQ

What new coverage did Argus Research initiate on April 10, 2023?

Argus Research initiated coverage on Bristow Group Inc. (NYSE:VTOL), highlighting its leadership in offshore energy and government services transportation.

What are the key positives highlighted in Argus Research's report on VTOL?

The report emphasizes benefits from increased aircraft utilization, Government Services segment expansion, recent contract wins, and a fair value estimate of $33 per share.

What was Bristow Group's net liquidity as of December 31, 2022?

As of December 31, 2022, Bristow Group reported a net liquidity of $240 million.

What challenges does Bristow Group face according to the recent report?

The report notes the volatility in Bristow's share price, which has traded between $21.60 and $40.10 since early 2022.