Analyst Catherine O’Brien of Goldman Sachs reiterated a Sell rating on Hawaiian Holdings (HA – Research Report), with a price target of $4.00.
Catherine O’Brien’s Sell rating on Hawaiian Holdings is largely driven by the company’s disappointing performance in the third quarter and a bleak outlook for the fourth quarter. The company’s losses per share for the third quarter exceeded both the FactSet consensus and the Goldman Sachs estimate. This shortfall was attributed to underperforming revenues and higher non-operating costs. Furthermore, O’Brien has widened the projected loss per share for the full year of 2023 due to the disappointing third quarter results and a worse than anticipated outlook for the fourth quarter.
O’Brien also cited pressures on near-term revenue trends due to the negative effects of the Maui wildfires and increasing industry capacity growth to Japan, where demand is still in recovery. Furthermore, she noted that the company is facing higher than expected near-term unit cost growth due to a high number of grounded aircraft. Despite positive signs in Japan’s point-of-sale demand and early commentary on Maui holiday bookings, O’Brien does not expect the company to return to profitability until 2026. She points to medium-term capacity constraints related to Hawaiian Holdings’ A321neo fleet and ongoing competitive pressures within its interisland network as contributing factors. Consequently, due to the reduced outlook, she has lowered the price target for the company’s stock, underlining her Sell rating.
O’Brien covers the Industrials sector, focusing on stocks such as American Airlines, Delta Air Lines, and Southwest Airlines. According to TipRanks, O’Brien has an average return of -4.4% and a 37.35% success rate on recommended stocks.
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Hawaiian Holdings (HA) Company Description:
Hawaiian Holdings, Inc. is a holding company, which engages in the provision of air transportation services. It offers cargo handling and passenger flights between the Hawaiian Islands and its neighbor island routes through its subsidiary, Hawaiian Airlines, Inc. The company is headquartered in Honolulu, HI.
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