Canaccord cuts Bridger Aerospace target to $5, maintains buy

Published 17/03/2025, 12:36
Canaccord cuts Bridger Aerospace target to $5, maintains buy

On Monday, Canaccord Genuity revised its price target for Bridger Aerospace (NASDAQ:BAER), reducing it to $5.00 from the previous $6.00, while continuing to endorse the stock with a Buy rating. Currently trading at $1.84, the stock has shown significant volatility, as noted by InvestingPro analysis. The adjustment follows Bridger Aerospace’s active involvement in aerial firefighting operations across the United States.

The company’s fleet was operational for ten out of twelve months in 2024, serving in sixteen states. This operational success has contributed to impressive revenue growth of 47.83% over the last twelve months, with total revenue reaching $98.61 million. This level of activity is anticipated to remain consistent in fiscal year 2025. Bridger Aerospace’s aircraft, known as Scoopers, were notably deployed to combat the California wildfires and are currently engaged in firefighting operations in Oklahoma, as highlighted on the company’s Instagram account.

The devastating California wildfires, which caused over $200 billion in damage to real estate, are expected to lead to increased budget allocations from federal and state governments for aerial firefighting and surveillance services in fiscal year 2026. In response to this demand, the U.S. Forest Service is considering a 120-day task order for all six of Bridger’s Super Scoopers, marking a potential first for the company.

Additionally, Bridger Aerospace may transport at least two Spanish Scoopers to the United States if the need arises. The revised price target of $5.00 is based on an 18.8x multiple applied to the analyst’s 2025 adjusted EBITDA estimate of $44.2 million. The company’s current EBITDA stands at $24.3 million, with a healthy current ratio of 2.73. InvestingPro analysis reveals 10+ additional key metrics and insights about Bridger Aerospace’s financial health and market position, available in the comprehensive Pro Research Report.

In other recent news, Bridger Aerospace Group Holdings Inc. reported a notable surge in revenue for the fourth quarter of 2024. The company’s revenue for the full year reached $98.6 million, marking a 48% increase from the previous year. Despite a net loss of $15.6 million, this represented a significant improvement over the $77.4 million loss recorded in 2023. Additionally, Bridger Aerospace doubled its full-year adjusted EBITDA to $37.3 million. The company has set its revenue guidance for 2025 between $105 million and $111 million, with expectations for adjusted EBITDA to range from $42 million to $48 million.

In other developments, Sam Davis has been appointed as the permanent President and CEO of Bridger Aerospace, after serving as interim CEO since July 2024. His leadership during the interim period was marked by significant financial growth, including increased adjusted EBITDA and positive cash flow. Bridger Aerospace also announced a five-year, $20 million contract with the U.S. Department of the Interior to support fire and resource management activities in Alaska. The company is actively seeking additional opportunities with states for exclusive-use contracts to ensure its fleet remains dedicated to critical wildfire response efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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