UPDATE: Goldman Sachs Resumes Coverage on Copa Holdings SA with Buy Rating, $167 PT on Strong Cash Flow

In a report published Monday, Goldman Sachs analyst Tom Kim resumed coverage on

with a Buy rating and $167.00 price target. In the report, Goldman Sachs noted, “Copa generates strong cash flows that affords an increasing payout ratio. Our analysis leads us to a non-consensus view that Copa will dole out a further dividend in 2013 and raise its payout to 40% in 2014E from 30%, based on its target 30% cash to revenue ratio. The key risk is the potential dilutive impact of a balance sheet with low yielding cash, even with a 40% payout.” Copa Holdings SA closed on Friday at $131.32.