Deutsche Bank Downgrades Copa Holdings (CPA) to Hold

Deutsche Bank downgraded Copa Holdings (NYSE: CPA) from Buy to Hold with a price target of $99.00 (from $133.00). Analyst Michael Linenberg pointed to the company's soft outlook.

"With respect to its 2015 outlook, management revised its operating margin guidance lower to 14% to 16% from 16% to 18% previously. Driving its 2015 margin guidance is capacity growth of 6% (down from 7% previously), unit revenue of 11.4 cents (vs. 11.8 cents), and CASM ex-fuel of 6.5 cents (vs. 6.6 cents). Management maintained its 2015 jet fuel forecast of $2.45/gal. Given that revenue trends are decelerating further due to currency weakness and the softer demand/macro backdrop (especially in South America) in many of the countries Copa serves, we are lowering our 2015 and 2016 EPS forecasts to $7.15 from $8.90 and $9.00 from $10.50, respectively. As a result of our revised earnings outlook, we are lowering our 12 month price target to $99 from $130 and our rating on CPA shares to Hold from Buy." said Linenberg.

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

Shares of Copa Holdings closed at $106.90 yesterday.

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