Susquehanna downgrades Air Transport Services on ‘crown jewel’ pressure

Susquehanna analyst Christopher Stathoulopoulos downgraded Air Transport Services to Neutral from Positive with a price target of $15, down from $26. The analyst is “still surprised” by the magnitude of the company’s Q3 miss and downward revision to guidance, particularly given that Air Transport’s investor day in September was approximately just three days before quarter-end. The firm believes the company’s “crown jewel” CAM could be facing pressures into fiscal 2024 via the pending sales of the B767-200Fs, slowing demand for cargo lift, and rising interest and depreciation. Susquehanna thinks it is going to take some time before investors are again comfortable with the story.