Controladora Vuela Compania de Aviacion SAB de CV, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Thomas Fitzgerald CFA from TD Cowen maintained a Buy rating on the stock and has a $6.00 price target.
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Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors influencing Controladora Vuela Compania de Aviacion SAB de CV. One key consideration is the positive impact of currency fluctuations, with the USD depreciating against the MXN by approximately 4.6% since the last earnings call. This currency movement is expected to support unit revenues in the latter half of the year, enhancing the company’s financial performance.
Additionally, the anticipated slowdown in domestic capacity growth in Mexico is seen as a favorable development for the company. This deceleration, alongside management’s strategy of prioritizing close-in pricing over volume, is expected to improve demand as the peak summer season approaches. These factors, combined with the company’s alignment with its guidance and the expectation of stable earnings, underpin Fitzgerald’s Buy rating for the stock.
In another report released on July 1, Evercore ISI also maintained a Buy rating on the stock with a $9.00 price target.