Air Transport Services Group (NASDAQ:ATSG) stock has reached a new 52-week high, touching $22.28, marking a significant milestone for the company's shares. According to InvestingPro data, the stock is currently trading near its Fair Value, with technical indicators suggesting overbought conditions. This peak reflects a robust 1-year change, with the stock value surging by an impressive 42.56%. The company's strong performance is particularly evident in its remarkable 77.4% gain over the past six months, with the $1.45B market cap company showing significant momentum. The company's strong performance over the past year has been propelled by strategic business moves and a favorable market environment, which have collectively contributed to investor confidence and the stock's upward trajectory. As ATSG continues to navigate the dynamic logistics and air transport landscape, stakeholders are closely monitoring whether the momentum can be sustained in the long term. While analysts maintain a hold recommendation, InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of ATSG's prospects.
In other recent news, Air Transport Services Group (ATSG) is set to be acquired by private equity firm Stonepeak in an all-cash deal valued at approximately $3.1 billion. The transaction is expected to be finalized in the first half of 2025, provided no other offers are made during the go-shop period. Following the announcement, Stifel downgraded ATSG from Buy to Hold and adjusted the price target to $22.50, aligning it with the acquisition price.
The acquisition price represents a multiple of 5.8 times ATSG's projected 2024 EBITDA and 5.4 times its 2025 EBITDA, according to Stifel's analysis. Despite ATSG's growing EBITDA, the firm suggests a slight possibility of another suitor emerging during the go-shop period.
Financially, ATSG reported robust growth in the second quarter of 2024 and raised its adjusted EBITDA forecast to approximately $526 million. Furthermore, the company expanded its agreement with Amazon (NASDAQ:AMZN), planning to add 10 more aircraft to their fleet. These recent developments reflect the ongoing changes within the aviation leasing industry and ATSG's strategic moves.
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