Analyst Jens Spiess of Morgan Stanley maintained a Buy rating on Copa Holdings (CPA – Research Report), boosting the price target to $120.00.
Jens Spiess has given his Buy rating due to a combination of factors including Copa Holdings’ impressive traffic growth and capacity management. The company’s total traffic increased by 2.3% year-over-year in February, with quarter-to-date traffic up by 12.7% compared to the previous year. This growth surpasses the consensus and Morgan Stanley estimates for the first quarter of 2025, which were 7.8% and 8.4% respectively.
Additionally, Copa’s capacity rose by 1.7% year-over-year in February, leading to a load factor of 86.7%, which is an improvement of 40 basis points from the previous year. The OAG schedules indicate a further capacity increase of approximately 5% year-over-year in March, suggesting a potential upside to the initial capacity estimate for the first quarter of 2025. These positive trends in traffic and capacity are key reasons for the Buy rating on Copa Holdings’ stock.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $185.00 price target.