VTOL - Bristow Group Will Move Sideways Before Transition Yields Results (Rating Downgrade)

2024-06-10 10:38:51 ET

Summary

• VTOL has stable revenues from long-term government services contracts related to search and rescue.
• The company's transition to a fully integrated solution will improve its operating margin.
• The stock is currently reasonably valued compared to its peers, leading to a "hold" rating.

VTOL Is In Placid Waters

I discussed Bristow Group ( VTOL ) in the past, and you can read the latest article here , published on February 2, 2024. After Q1, I found that new government services contracts related to search and rescue have potentially become a significant value driver. It has long-term stable contracts with monthly standing charges, likely translating to stable cash flows. I think the company's transition of the existing rotary and fixed-wing services into a fully integrated, innovative solution will improve its operating margin over the next year....

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