UPDATE: Morgan Stanley Reiterates On Copa Holdings SA Despite Solid 1Q14 Results

In a report published Thursday, Morgan Stanley analyst Eduardo S. Couto reiterated an Overweight rating on

, but lowered the price target from $165.00 to $156.00. In the report, Morgan Stanley noted, “Strong 1Q14 with all-time high EBIT margin at 24.8%. Despite a solid 1Q, we cut FY2014/15 as CPA announced a 40% capacity reduction in Venezuela starting in Jun-Jul. We see reduced VNZ exposure as positive despite lower numbers. Our PT of $156 (down 5%) implies 18% upside with CPA at 12X P/E.” Copa Holdings SA closed on Wednesday at $132.27.