3/19/2010- Morgan Stanley analysts are initiating coverage of Atlas Air Worldwide Holdings (NASDAQ:AAWW) with an "equal weight" rating because they believe that the company's "de-risking" strategy is the foundation of a stronger business in the longer-term.
Analysts William Greene, John Godyn and Edward Gilliss said, "However, we expect that as the company transitions, investors will be reluctant to give the stock credit through multiple expansion. At the same time, Atlas has less leverage to the economic recovery than other transports we cover, i.e. Rails and FDX. Without multiple expansion or greater operating leverage to drive outperformance should economic tailwinds continue and with dampened downside through management's de-risking strategy, we see balanced risk/reward through year-end."
The bank sees fiscal 2010 EPS of $4.35 and fiscal 2011 EPS of $4.97.
Keywords: atlas air worldwide Morgan Stanley
Ticker(s): AAWW
