07:21 AM EDT, 06/06/2023 (MT Newswires) -- Raymond James raised its price target on Exchange Income Corp. (EIF.TO) to $70 from $68.
Analyst Steve Hansen maintained a Strong Buy rating on shares of the diversified acquisition-oriented company focused on aviation services and aerospace.
Hansen said the announcement that EIC's Carson Air subsidiary has been awarded a 10-plus year, sole-source fixed-wing medevac contract servicing British Columbia, is a significant opportunity.
The analyst said it "not only bolster's the firm's scale and competitive position, but also layers in another high-quality, predictable cash flow stream for a decade (& likely much longer)."
"While the contract requires approximately $200 Million in capital to build out the requisite fleet & ground infrastructure, we see this investment as staged over 18 months, making it easily digestible relative to EIC's $1 Billion-plus in liquidity (no need for equity)," Hansen said in a note to clients.
"Dovetailing on a string of positive developments in recent months, our conviction in the EIC story only continues to grow."
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