UPDATE: Deutsche Bank Upgrades Copa Holdings to Buy on Improved Earnings Outlook
In a report published Tuesday, Deutsche Bank analyst Michael Linenberg upgraded the rating on Copa Holdings (NYSE: CPA) from Hold to Buy, and raised the price target from $100.00 to $150.00.
In the report, Linenberg noted, “Copa reported Mar Q diluted EPS of $2.80 (ex-specials), well ahead of both our forecast of $2.25 and the consensus of $2.32. Underlying this result was a 22.2% operating margin, 1.7 pp higher than a year ago and marking the return of margin expansion after five consecutive quarters of contraction. We believe the upside surprise to EPS is not a ‘fluke' but rather a harbinger of a new earnings trajectory driven by the company's more moderate capacity growth plans, consolidation among the region's key players, lower fuel prices, and additional opportunities to reduce costs via productivity improvements.”
Copa Holdings closed on Monday at $125.00.
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