Convex Strategies

Copa Holdings: Uniquely Positioned Panamanian Airliner Priced For 50% Gains

Copa Holdings (NYSE:CPA) is a Panama-based airliner with destinations in Latin America, the Caribbean, and the United States. Copa has grown earnings per share every year since 2001, largely driven by best-in-class operating margins, low-risk growth strategies, and an extremely favorable macro environment. The outlook for Latin American growth remains strong, and regional flight demand is increasing rapidly as the middle class broadens. CPA is currently valued at slightly less than $6 billion, which appears rather modest in the context of its current operating performance and future growth prospects.

Favorable Macro Operating Environment

Copa's headquarters are located in Panama, which has been at the center of Latin American growth over the past several years. RGDP growth was estimated...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details