Goldman Sachs Upgrades SkyWest (SKYW) to Buy

Goldman Sachs analyst Catherine O\'Brien upgraded SkyWest (NASDAQ: SKYW) from Neutral to Buy.

The analyst comments "SKYW shares have declined in-line with the rest of our airlines coverage universe since concerns of COVID-19 first surfaced (down 59% vs. our coverage universe ex-SKYW -45% since January 17, the last trading day before the World Health Organization began tracking cases) despite having significantly less revenue risk (see more on this below). We believe this is due in part to its higher-than-industry leverage position. However, we believe the company’s leverage is somewhat misunderstood, as the majority of its debt is aligned with its capacity purchase agreements (i.e., it has contracted revenue to cover its interest payments). Furthermore, our illustrative stress test analysis implies the potential for upside from current share price levels."

For an analyst ratings summary and ratings history on SkyWest click here. For more ratings news on SkyWest click here.

Shares of SkyWest closed at $27.40 yesterday.

You May Also Be Interested In

• Wolfe Research Upgrades Biogen (BIIB) to Outperform
• Northland Upgrades Hyliion Holdings (HYLN) to Outperform 'on Improved Visibility to KARNO Commercialization'
• Citi upgrades Establishment Labs to Buy with $92 target