Analyst Thomas Fitzgerald CFA from TD Cowen reiterated a Buy rating on Sun Country Airlines Holdings (SNCY – Research Report) and increased the price target to $20.00 from $14.00.
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Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors that highlight Sun Country Airlines Holdings’ strong financial outlook and strategic initiatives. The company is expected to see significant revenue growth driven by its resilient business model, which benefits from long-term contracts contributing to a substantial portion of its income. Additionally, the expansion of its cargo operations is projected to enhance profit margins significantly in the latter half of 2025 and into 2026.
Sun Country’s strategic decisions, such as the induction of additional freighters and a new co-branded credit card partnership, are anticipated to further bolster its financial performance. The airline’s disciplined capital allocation strategy, with limited capital expenditure needs and a focus on debt reduction, positions it well for generating free cash flow. These factors, along with management’s positive outlook on near-term demand and revenue growth, support the raised price target and Buy rating.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $18.00 price target.