On Monday, Canaccord Genuity adjusted its price target on shares of Bridger Aerospace (NASDAQ: BAER), lowering it to $5.25 from the previous $5.50. The firm continues to recommend a Buy rating on the stock. The revision reflects considerations related to the company's recent acquisition, which is expected to influence its financial projections for the year ahead.
Canaccord Genuity has updated its 2024 revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) estimates for Bridger Aerospace to $91.7 million and $38.5 million, respectively. While acknowledging potential integration expenses that may arise post-acquisition, the firm anticipates that cost synergies from consolidating airframe modification, maintenance, and test work will be beneficial. These efforts are aimed at enhancing the operational readiness of Bridger’s aerial firefighting fleet and improving the company's competitive standing in securing contracts with various government entities, including the Department of Defense (DoD).
The new price target of $5.25 is based on a 12.6x enterprise value to adjusted EBITDA multiple, which is applied to the firm's 2024 adjusted EBITDA estimate. Canaccord Genuity's outlook suggests confidence in Bridger Aerospace's ability to effectively integrate the recent acquisition and capitalize on the resulting efficiencies to drive future growth and profitability.
Bridger Aerospace specializes in aerial firefighting and has been working to expand its service offerings. With the acquisition, the company is poised to enhance its capabilities and reinforce its position in the market. The revised price target and sustained Buy rating indicate a positive expectation for the company's financial performance in the coming year.
In other recent news, Bridger Aerospace Group Holdings, Inc. has announced its acquisition of FMS Aerospace for $20.6 million. The Alabama-based company has been a key partner in Bridger's Multi-Mission Aircraft program, contributing engineering expertise. The acquisition is expected to enhance Bridger's capabilities in emergency air services and aerospace modifications.
In further developments, Bridger Aerospace has seen significant changes in its leadership, with Sam Davis appointed as interim CEO following Timothy P. Sheehy's resignation. The company also expanded its board with the addition of aviation industry veteran Dan Drohan.
Canaccord Genuity recently initiated coverage on Bridger Aerospace, assigning a Buy rating. The company has reported a record first-quarter revenue of $5.5 million for fiscal 2024, despite a net loss of $20.1 million and an adjusted EBITDA of negative $6.9 million. Bridger Aerospace attributes its 2023 net loss to non-cash, stock-based compensation expenses and one-off costs related to becoming a public company and fleet investments. These are the recent developments in Bridger Aerospace.
InvestingPro Insights
As Bridger Aerospace navigates post-acquisition challenges and aims to strengthen its market position, real-time data from InvestingPro provides additional context for investors. The company's market capitalization currently stands at $169.25 million, reflecting the market's valuation of the business. Despite a significant revenue growth of 53.91% over the last twelve months as of Q1 2024, Bridger Aerospace is trading near its 52-week low, with a price that is 39.17% of its 52-week high. This could indicate a potential buying opportunity for investors who believe in the company's long-term strategy and ability to turn recent sales growth into profitability.
InvestingPro Tips highlight that while Bridger Aerospace has seen its price fall over the last three months, analysts are anticipating sales growth in the current year. This aligns with Canaccord Genuity's positive outlook on the company's potential to drive future growth and profitability. Moreover, the company does not pay a dividend, which may be relevant for income-focused investors. For those interested in deeper analysis, there are additional InvestingPro Tips available that provide further insights into Bridger Aerospace's financial health and market performance.
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