VTOL - Bristow Group: Contract Wins Undervaluation Make It A Buy (Rating Upgrade)
2024-02-02 12:35:17 ET
Summary
- VTOL plans to add to its fleet size in 2024 and has secured long-term contracts with the U.K. and Irish coast guards.
- The company has growth opportunities in Brazil, West Africa, and the Gulf of Mexico, but faces challenges with supply chain continuity.
- Despite facing headwinds, VTOL's management expects revenue and adjusted EBITDA growth in FY2023 and FY2024, and the stock is relatively undervalued.
VTOL Rides The Industry Tailwind
I previously discussed Bristow Group (VTOL), and you can read my latest article here . In that piece, I found that its asset utilization improved in many geographies as demand improved and supply plateaued. In the current iteration, I find VTOL plans to add to its fleet size in 2024 following the revival of international offshore project FIDs. It also struck long-term contracts with the U.K. and Irish coast guards for search and rescue operations. The change in order value and durations will help it improve its average pricing and cash flow generation....
Bristow Group: Contract Wins, Undervaluation Make It A Buy (Rating Upgrade)