Air Transport Services downgraded to Hold from Buy at Stifel

Stifel analyst Frank Galanti downgraded Air Transport Services (ATSG) to Hold from Buy with a price target of $22.50, down from $25, after the company entered into an agreement to be acquired by Stonepeak in an all-cash transaction with an enterprise valuation of approximately $3.1B or $22.50 per share. Given the “generally low” valuation, the company’s growing EBITDA, and potential benefits to being private, the firm sees a “small chance” that another buyer will come in during the go-shop period. A higher bid is possible, but unlikely, the analyst tells investors in a research note.