In a report released yesterday, Stephen Trent from Citi maintained a Buy rating on Copa Holdings (CPA – Research Report), with a price target of $153.00.
Stephen Trent has given his Buy rating due to a combination of factors including the airline’s robust traffic statistics and its successful rebound in capacity. Trent notes that Copa Holdings has impressively reinstated all of its 737 MAX9 aircraft, which not only counteracted previous capacity reductions but also supported a solid increase in passenger traffic. The positive trajectory in traffic stats, such as the 17.5% year-over-year (y-o-y) increase in revenue passenger miles (RPMs) for February, coupled with a corresponding 17% increase in available seat miles (ASMs), underpins the strength in Copa’s operational performance. Additionally, the load factor’s slight improvement further indicates efficient capacity management and strong demand.
Moreover, when comparing current performance metrics with pre-pandemic levels, Trent highlights that Copa’s RPMs have surged by 23.8% relative to February 2019, showcasing a robust recovery. This recovery is not an isolated event but part of a continued positive trend seen in previous months. The aggregated data for January and February also reflect healthy growth in RPMs, aligning well with the overall positive outlook. Trent’s assessment is also bolstered by an anticipated significant share price return, which contributes to the recommendation that Copa Holdings’ stock is a favorable investment opportunity.
CPA’s price has also changed slightly for the past six months – from $98.210 to $102.250, which is a 4.11% increase.
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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:
- TipRanks’ ‘Perfect 10’ List: 2 Top-Scoring Stocks With Plenty of Growth on Tap
- Copa Holdings reports January 2024 passenger traffic down 5.9% y-o-y
- Copa Holdings price target raised to $167 from $165 at Seaport Research
- Copa Holdings reports Q4 EPS $4.55, consensus $3.87
- Copa Holdings S.A. (CPA) Q4 Earnings Cheat Sheet
