UPDATE: Deutsche Bank Upgrades SkyWest (SKYW) to Buy

February 22, 2021 4:31 AM EST
Get Alerts SKYW Hot Sheet
Price: $52.97 --0%

Rating Summary:
    9 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 4 | New: 18
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(Updated - February 22, 2021 6:11 AM EST)

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)."

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 $53.73 yesterday.

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