Alliance Aviation Services’ interim result shows rapidly improving unit economics, excellent cash conversion and increasingly simpler accounts, assesses Credit Suisse. Operating income of $46m was up 34% versus last year with higher profitability per plane.
The company’s latest update also puts to rest cash flow concerns and uncertainty around the future home of $200m of deployed aircraft capital, notes a very pleased Credit Suisse.
The Outperform rating is unchanged and the target increased to $5.40 from $5.10.
Sector: Transportation.
Target price is $5.40.Current Price is $4.36. Difference: $1.04 – (brackets indicate current price is over target). If AQZ meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
