Analyst Rogerio Araujo of Bank of America Securities reiterated a Buy rating on Copa Holdings (CPA – Research Report), with a price target of $150.00.
Geoff Meacham has given his Buy rating due to a combination of factors surrounding Copa Holdings. Despite the temporary grounding of 22% of the company’s seat capacity due to the FAA’s inspection of its 737 MAX 9 fleet, Meacham upholds a positive outlook on the stock. His confidence is underpinned by the anticipation that the fleet’s inspection-related disruptions will not significantly impact Copa’s financial performance in the long term. Additionally, he notes that the current issue appears to be related to a manufacturing quality oversight rather than a more serious design flaw, suggesting a less severe effect on the company’s operations.
Meacham’s Buy rating also reflects his broader view of Copa Holdings as a strong investment choice within the Latin American Transportation & Capital Goods sector for 2024. He attributes this to the airline’s highly discounted valuation and robust earnings momentum, which he believes will sustain. Despite the potential for short-term stock price volatility resulting from the recent news, the analyst maintains a $150.00 USD price objective, indicating a solid growth prospect for Copa Holdings. His stance is further reinforced by the airline’s inclusion in Bank of America Securities’ top picks for the upcoming year, highlighting the firm’s confidence in the company’s continued financial success.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $190.00 price target.
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Copa Holdings (CPA) Company Description:
Copa Holdings SA engages in provision of air transportation. It involves in an airline operation which provides passenger and cargo services through the Copa Airlines and Copa Colombia principal operating subsidiaries. The company offers international flights to Costa Rica, Jamaica, Colombia and other cities. Copa Holdings was founded in 1947 and is headquartered in Panama.
Read More on CPA:
- Copa Holdings reports November passenger traffic up 12.4% y/y
- 5 Airline Stocks to Watch this Holiday Season – November 2023
- Copa Holdings price target raised to $135 from $115 at TD Cowen
- Copa Holdings reports Q3 adjusted EPS $4.39, consensus $3.79
- Copa Holdings reports October traffic up 10.2% vs. October 2022
