Raymond James Initiates Bristow Group with Outperform Rating

Core Viewpoint - Raymond James initiated coverage of Bristow Group (NYSE: VTOL) with an Outperform rating and a $60 price target, highlighting the company's improving earnings quality and management as it approaches 2027 [1] Group 1: Company Performance and Outlook - Bristow is recognized as a well-managed company with improving earnings quality, particularly following the expansion of its Government Services segment [1] - The firm anticipates upside to its forecasts based on a positive outlook for offshore energy markets in 2027 [1] Group 2: Market Dynamics and Competitive Advantages - Continued supply constraints in twin-engine helicopters and parts are expected to support disciplined capacity and favorable pricing, reinforcing Bristow's competitive advantages due to its scale and strong balance sheet [2] - The implementation of Advanced Air Mobility (AAM) initiatives is believed to provide additional earnings growth opportunities in the long term [2] Group 3: Earnings Stability and Market Expectations - Buy-side expectations for 2027 appear undemanding relative to projections and consensus, with anticipated multiple expansion as investors recognize the stability of earnings from long-term Government Services contracts [3] - The Offshore Energy Services segment derives approximately 85% of its exposure from production-related activities, which are less sensitive to commodity price fluctuations [3]