Imperial Capital Reiterates In-Line, Lowers Price Target On Erickson On 4Q14 Earnings Review

In a report published Tuesday, Imperial Capital analyst Bob McAdoo reiterated an In-Line rating on Erickson Inc. (NASDAQ: EAC), but lowered the price target from $13.00 to $7.00.

In the report, Imperial Capital noted, "We are maintaining our In-Line rating, but reducing our one-year price target to $7 from $13 on EAC shares. Management continues to take steps to offset industry headwinds, including a recently announced corporate reorganization aimed at improving efficiencies and, ultimately, profitability. We believe newer business lines, such as the South American oil & gas business, will help improve earnings stability and visibility over time. However, lower oil prices and a substantial drawdown of military activity in Afghanistan are expected to be significant headwinds in 2015. We recommend investors continue to wait for more positive industry fundamentals and clear signs of earnings improvement and continuity. We expect shares of EAC to continue to trade consistent with overall market trends."

Erickson closed on Monday at $6.17.