UPDATE: Deutsche Bank Upgrades SkyWest (SKYW) to Buy
- Tech stocks push S&P 500 to record close, buoy Nasdaq
- U.S. Calls for Pause of J&J (JNJ) Vaccine After Clotting Cases, Including One Death
- Coinbase (COIN) direct listing IPO reference price set at $250
- Biggest SPAC Deal Ever: Grab To Go Public in a $40 Billion Merger With Altimeter (AGC), Backed by Fidelity and BlackRock
- Oil rises after robust China data but J&J vaccine pause weighs
Deutsche Bank analyst Michael Linenberg upgraded SkyWest (NASDAQ: SKYW) from Hold to Buy with a price target of $65.00 (from $45.00).
The analyst comments "We are raising our 12-month price target (PT) on SKYW shares from $45 to $65 which is derived by applying a ~7.5 EV/EBITDAR multiple to our 2022 EBITDAR estimate and a ~6.5 EV/EBITDAR multiple to our 2023 EBITDAR estimate (which compares to the stock's historical trading range of 5x - 7x, although multiples can trade above the range during a recession/recovery period). The downside risk to our price target is if we fail to see a leveling-off in new COVID-19 cases. Other downside risk factors are economic weakness, government regulation, taxation, airport constraints, safety concerns, the threat of terrorism and war, associated costs/risks with labor negotiations and the revaluation of the stock market resulting in a higher equity risk premium being applied to airline shares.both are at or below the lower end of the stock’s historical trading range, which we think is a reasonable application in light of the current challenging demand environment)."
Shares of SkyWest closed at $53.73 yesterday.
You May Also Be Interested In
- UPDATE: JPMorgan Upgrades Spirit Airlines (SAVE) to Overweight
- Next Fifteen Communications Group Plc. (NFC:LN) (NXFNF) PT Raised to GBP9.40 at Berenberg
- JTC Plc. (JTC:LN) PT Raised to GBP7.65 at Berenberg
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Upgrades, Upgrades
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!