Thomas Fitzgerald CFA, an analyst from TD Cowen, maintained the Buy rating on Controladora Vuela Compania de Aviacion SAB de CV (VLRS – Research Report). The associated price target is $14.00.
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Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors, including the updated estimates that incorporate Controladora Vuela Compania de Aviacion SAB de CV’s recent traffic statistics and management insights for 2025. Despite challenges in specific markets, the company’s traffic and capacity exceeded prior forecasts for the December quarter, prompting an upward revision of the 4Q24 EPS estimate.
Furthermore, management’s strategic plans to increase capacity by 13% to 15% in 2025, with a particular focus on international growth, contribute to a positive outlook. While there are potential risks due to geopolitical uncertainties affecting transborder traffic, the expectation of normalized growth levels and less volatile EBIT margins in the future supports the Buy rating. The emphasis on ancillary fares and the adjustment of base fares are seen as strategic measures to maintain optimal loads, reflecting a proactive management approach to market conditions.
In another report released on February 10, Barclays also maintained a Buy rating on the stock with a $12.00 price target.