Sun Country Airlines Holdings (SNCY – Research Report), 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 $27.00 price target.
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Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors that indicate strong future performance for Sun Country Airlines Holdings. The company’s recent operational successes and strategic decisions contribute to a positive outlook. Specifically, Sun Country’s delivery of new freighters under its agreement with Amazon and anticipated cargo revenue growth highlight its expanding business capabilities.
Furthermore, the company is expected to see significant margin expansion in the next couple of years, supported by favorable conditions in its core markets and advantageous contract renewals. The conservative guidance for the upcoming quarters, combined with expected growth in block hours and operating margins, suggests robust free cash flow generation, which could be used for debt reduction or share repurchases. This financial strength and strategic positioning underpin the Buy rating, along with a raised price target reflecting confidence in future earnings potential.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $22.00 price target.