Deutsche Bank Sees Reduced FY 2014 Outlook for Copa Holdings S.A.

In a report published Thursday, Deutsche Bank analyst Michael Linenberg reiterated a Buy rating and $180.00 price target on

. In the report, Deutsche Bank noted, “Copa reported June Q diluted EPS of $2.61 (ex-specials), handily exceeding our $2.25 forecast and the consensus estimate of $2.20. The beat was primarily attributable to better cost control (unit costs ex-fuel decreased 0.9% versus our +1.0% estimate). The result represented a 36.4% year-over-year improvement. The company's operating margin (ex-specials) was 19.5%, well ahead of our 18.1% forecast and 300 basis points higher than last year. June Q revenue grew 13.8% year-over-year to $674 million (nearly in line with our $672 million forecast). Passenger revenue increased a greater 14.4%, driven by a 4.3% increase in passenger unit revenue (‘PRASM') and a 9.7% increase in capacity. PRASM was boosted by a 1.6% year-over-year improvement in yields along with a 2.0 point increase in load factor to 77.3%.” Copa Holdings S.A. closed on Wednesday at $150.92.