Jefferies Reports New Dividend And Earnings Clarity For F2012

According to Jefferies, Bristow Group BRS represents good LT small cap growth story leveraged to the expansion of global offshore drilling activity. Jefferies said that it believes improving market conditions and margins are likely already priced and see less than a 15% upside over the next 12 months, which is its threshold for a Buy rating. “BRS trades at 10.3x our cal. 2012 EPS and 7.2x our lease-adj. cal. 2012 TEV/EBITDA, approx inline with the OSV group and the offshore drillers. To account for higher EBITDA we are incr. our 12-month PT to $48 from $45, based on 7.5x our cal. 2012 TEV/EBITDA, an approx. 1x prem. to BRS' avg. 3-yr trading range on NTM TEV/EBITDA and inline with our PT's for the OSV group.” Bristow Group closed yesterday at $45.22.