UPDATE: Oppenheimer Starts Era Group (ERA) at Outperform

Oppenheimer initiated coverage on Era Group (NYSE: ERA) with an Outperform rating and a price target of $21. Analyst James Schumm sees the stock as undervalued and pointed out resilient earnings.

Schumm explained, "We expect ERA to demonstrate meaningful earnings resilience over the coming quarters as a number of positive factors help offset much of the activity weakness from lower commodity prices. Most notably, we believe the company is having success in improving the utilization of its medium helicopters and its Brazilian operations."

"Furthermore, new high margin, heavy helicopters are expected to improve profitability, and a small acquisition in Colombia could provide a tailwind in 2016. Therefore, despite ongoing challenges in secondary markets such as Air Medical, Dry Leasing and Alaska, we believe the company is likely to significantly improve earnings over the next several quarters. With the stock trading well below net asset value, we believe ERA is a compelling value at these levels," added the analyst.

For an analyst ratings summary and ratings history on Era Group click here. For more ratings news on Era Group click here.

Shares of Era Group closed at $15.75 yesterday.

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