(Sharecast News) - Analysts at Canaccord Genuity reiterated their 'buy' rating and 120.0p target price on aviation firm Air Partner on Monday, stating recent solid trading had set the firm's balance sheet up with "firepower for growth".
Canaccord Genuity said Air Partner's freight charter unit had delivered stronger-than-expected trading, leading to full-year 2022 pre-tax profit, net cash and earnings per share upgrades.
As Air Partner delivers on its strategy, the Canadian bank thinks this will allow investors to assign a greater probability of compounding growth prospects. Critically, even though stronger trading has a 2021-22 effect only, Canaccord thinks the cash generated opens the way to accelerate growth and shareholder returns and that, as a result, longer-term the shares could then surpass 240.0p as the PER re-rates upwards.
"We project unchanged 2023E EPS 37% > FY20 EPS (pre-COVID-19) despite ~20% dilution from new shares issued since - with quality EPS from FCF (av. ~11% FCF yield FY22E-24E) and RoE over 20%," said the analysts.
"With a PER ~10x FY23E (and ~3% DPS), we estimate this asset-light, diversifying company offers scope for good total return prospects."
1 Apr 2022 12:29
IN BRIEF: Air Partner takeover by US's Wheels Up becomes effective
Air Partner PLC - Gatwick, England-based aviation services firm - Takeover offer from Wheels Up Experience Inc, worth GBP84.8 million, becomes effective after scheme of arrangement is approved by court. Air Partner board resigns and shares are suspended from trading on the London Main Market on Friday. The stock will be cancelled on Monday. Wheels Up, a New York-based provider of on-demand private aviation in the US, is paying 125 pence per share in cash. Wheels Up, which has a USD760 million market capitalisation on the New York Stock Exchange, had said back in January it wants to use Air Partner to accelerate its market expansion globally.
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