Volaris (VLRS) PT Lowered to $11.40 at BofA Securities

BofA Securities analyst Murilo Freiberger lowered the price target on Volaris (NYSE: VLRS) to $11.40 (from $12.20) while maintaining a Buy rating.

The analyst comments "Yields dropped -5% YoY (-9% below BofAe), partially offset by higher ancillary revenues – with TRASM down -2% YoY (-2% vs BofAe). In addition, depreciation and amortization increased +24% YoY and +9% QoQ, +19% above BofAe – representing 19.4% of revenue vs 16.4% average in the past two years. We should investigate further the reason and potential recurrence of this expansion. Excluding lease expenses (as Volaris reverted aircraft redelivery provisions in 4Q23 to account for lease extensions), EBIT expanded +13% YoY, -12% vs BofAe. Net profit came in at US$46mn, -59% YoY, -27% vs BofAe."

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