Raymond James initiated coverage of Bristow Group Inc. (VTOL) with an outperform rating and assigned a $60.00 target price, representing an implied 36% upside from a current share level of $44.20. The firm also noted that Bristow is trading near its 52-week high of $46.04 and appears undervalued relative to Fair Value estimates.
In its assessment, Raymond James expects Bristow's earnings quality to show meaningful improvement entering 2027 as the company's Government Services segment expansion reaches completion. The brokerage's outlook is supported by a constructive view on the offshore energy market in 2027 from its Energy team. Raymond James pointed to the company's recent trailing performance and valuation metrics, noting diluted earnings per share of $4.78 over the last twelve months and a trailing price-to-earnings ratio of 9.23.
The analyst house also highlighted structural support for pricing and capacity discipline driven by persistent constraints on twin-engine helicopters and parts supply. Those constraints, Raymond James said, reinforce Bristow's scale and balance-sheet advantages versus peers. On that front, Bristow's liquidity position was cited as robust, with a current ratio of 1.91 indicating that short-term assets exceed short-term liabilities.
Looking further ahead, Raymond James said the rollout of advanced air mobility could create new avenues for earnings growth. The firm added that inferred 2027 buy-side estimates appear undemanding compared with the firm's own estimates and consensus, which underpins its constructive stance.
Raymond James also expects multiple expansion over time as investors place greater value on what the firm sees as a more stable earnings stream. The stability, the firm argued, would be driven by a sizeable Government Services segment with long-dated contracts alongside an Offshore Energy Services segment that has heightened exposure to production activity that is less sensitive to commodity prices. The firm quantified that 85% of the Offshore Energy Services segment is exposed to production activity.
On Bristow's recent financing and commercial initiatives, the company completed a $500 million private offering of 6.750% senior secured notes due 2033. Proceeds from that offering were used in part to address outstanding 6.875% senior secured notes due 2028 that had roughly $397 million outstanding, with the remainder earmarked for general corporate purposes.
Operationally and strategically, Bristow has pursued partnerships tied to electric and hybrid-electric aircraft. The company has collaborated with Vertical Aerospace to create electric air travel routes in and out of Manhattan using Vertical's new commercial electric aircraft, Valo, in partnership with Skyports Infrastructure. Bristow also secured the first delivery slot for Electra's EL9 Ultra Short hybrid-electric aircraft under a multi-million-dollar agreement that includes options for an additional 45 aircraft.
Separately, Bristow had previously announced a $400 million senior secured notes offering that would be guaranteed by its existing subsidiaries and secured by first-priority liens on various assets. Together, the recent debt issuance and prior announcements reflect a set of financing and fleet-related moves the company is undertaking as part of its strategic plan.
How Raymond James frames the thesis
Raymond James' initiating report ties the investment thesis to several interlocking themes: improving earnings quality tied to Government Services expansion, structural supply constraints supporting pricing power, the benefits of scale and a solid balance sheet, potential upside from advanced air mobility, and the prospect of multiple expansion as investors come to value steadier earnings streams. The firm also pointed to buy-side 2027 estimates that it regards as undemanding versus its own forecasts and consensus.
Market and financial context highlighted
- Trailing diluted EPS: $4.78 (last twelve months)
- Trailing P/E ratio: 9.23
- Current ratio: 1.91
- Company operational exposure: 85% of Offshore Energy Services linked to production activity
The combination of these metrics underpins Raymond James' view that Bristow may be positioned for improved earnings quality and potential valuation uplift over time.