Q: An analyst recently reported that new contracts for EIF in medivac and maritime surveillance are coming on board in 2025 and will bring a "huge" increase in income as well as profits? First, are these contracts set in stone? And second, do you think these contracts will in fact make a "huge" difference in EIFs growth and stock price? Finally, is it worth buying the stock now in anticipation of this growth?
5i Research Answer:
To our knowledge, EIF has not disclosed full financial details/terms on the contracts. But they should be material. Looking at consensus estimates, EPS is expected to go from $3.08 this year to $4.33 in 2025. We would be comfortable buying today for income and growth.