Raymond James initiated coverage of Bristow Group (NYSE: VTOL) with an Outperform rating and a $60 price target.
The analyst said Bristow represents a well-managed company with improving earnings quality heading into 2027, particularly following the completion of its Government Services segment expansion. The firm sees upside to its forecasts based on a constructive outlook for offshore energy markets in 2027.
Raymond James expects continued supply constraints in twin-engine helicopters and parts, which should support disciplined capacity and favorable pricing. These dynamics are viewed as reinforcing Bristow’s competitive advantages stemming from its scale and strong balance sheet.
Over the longer term, the analyst believes the implementation of Advanced Air Mobility (AAM) initiatives could provide additional earnings growth opportunities.
The firm also noted that 2027 buy-side expectations appear undemanding relative to its projections and consensus. It anticipates multiple expansion as investors increasingly recognize the stability of earnings driven by long-term Government Services contracts and the Offshore Energy Services segment, which derives approximately 85% of its exposure from production-related activities that are less sensitive to commodity price fluctuations.
