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SkyWest upgraded at Evercore ISI on high confidence earnings growth

Evercore ISI analyst Duane Pfennigwerth upgraded SkyWest (SKYW) to Outperform from In Line with a $120 price target SkyWest continues to see strong demand from its legacy airline customers and pilot production, the historical rate limiter in the post-Covid recovery, has been running ahead of plan given lower pilot attrition, the analyst tells investors in a research note. The company continues to find “creative” growth drivers for its existing fleet, its net debt/leverage is at its lowest level in over a decade and heading lower, and aircraft debt for a significant amount of the E175 fleet will be fully amortized in 2026, providing more favorable free cash flow dynamics, the firm adds.

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