Raymond James cuts Bristow Group stock price target on supply delays

Raymond James has reduced its price target on Bristow Group's stock, now forecasting a value of $63, down from $67. Despite this cut, the firm has retained an "Outperform" rating for the company. Bristow's stock is currently trading at $38.96, considerably below the analyst consensus range of $56 to $70, and the company appears undervalued based on InvestingPro data.

The analyst's positive view on Bristow was reinforced by the company's third-quarter fiscal 2026 results, which were reported despite ongoing supply chain issues that have delayed the expected recovery in Government Services profitability. Raymond James has maintained its $310 million adjusted EBITDA guidance midpoint for 2026, even as it revised its outlook downward for this segment. This adjustment illustrates the advantages of Bristow's diversified earnings base.

The company disclosed an EBITDA of $249.81 million over the past year, and remains profitable, according to InvestingPro data. Raymond James anticipates several factors driving earnings growth in 2027, including continued growth in Offshore Energy Services driven by favorable supply and demand dynamics, recent contract resets, and added aircraft deployment. Additionally, revenue from Bristow Special Missions and gradual normalization of Search & Rescue margins are expected to contribute to earnings.

The company's management has indicated a clearer path to overcoming operational challenges, although the normalization of Search & Rescue margins is expected to take longer, primarily affecting the latter half of 2027. Recently, Bristow Group reported its fiscal third-quarter 2026 earnings, earning $0.93 per share on revenue of $437.9 million.

These results fell short of Wall Street's expectations of $1.17 per share and $441.2 million in sales. Despite the earnings disappointment, Bristow reported a sequential revenue increase of approximately $26 million and a $10 million improvement in adjusted EBITDA. The company reaffirmed its full-year 2026 adjusted EBITDA midpoint at approximately $310 million, projecting a growth of roughly 25% compared to the previous year.