Oppenheimer starts ‘misunderstood’ Air Transport Services at Outperform

As previously reported, Oppenheimer initiated coverage of Air Transport Services (ATSG) with an Outperform rating and $27 price target. Air Transport, the world’s largest lessor of freighter aircraft with ownership of 135 aircraft, primarily Boeing 767 freighters, is a “misunderstood play in the e-commerce value chain,” the analyst tells investors. With 34%, 30% and 12% of revenues coming from Amazon (AMZN), the DoD and DHL, respectively, Air Transport is leveraged to e-commerce versus general cargo, but is also partially hedged from general economic cycles due to its government exposure, the analyst contends.