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Thesis
In my earlier article about Copa Holdings, S.A. (NYSE:CPA), I set a target stock price of $209 for Copa. However, as of now, the revenue projections for both 2023 and 2024 have already been
Copa Holdings: A Continuation Of Opportunity, Reiterate Buy
Summary
- If Copa maintains its current pace of adding 2 airplanes per quarter, it could fall short of its expectations, potentially leading to a delay in expansion plans by approximately 2.25.
- While its operating margins experienced a modest increase in Q2, attributed to reduced fuel prices, the sustainability of this improvement could be jeopardized if OPEC enacts further production cuts.
- The pivotal juncture in Copa's growth trajectory could materialize around 2038, coinciding with the retirement of its older fleet.
- In the medium term, investors in Copa can anticipate annual return rates reaching up to 49%.
- The DCF analysis implies a stock price of $244, with future projections pointing toward a stock price of $382.
I have been involved in investing since the age of 16, initially delving into factoring, a fixed income instrument. This venture proved to be both risky and intricate, given the lack of available financial information and the necessity to gauge a company's liquidity through alternative methods. Currently, I am in my second semester of university. My investment strategy predominantly revolves around the medium to long term. I gravitate towards stocks exhibiting robust growth potential or those offering attractive dividends. Specifically, I am drawn to companies in the technology sector, as well as those involved in streaming and manufacturing. In my articles, the majority of the stocks I discuss are categorized as "buys" or "strong buys." I refrain from shorting stocks due to the associated risks. Occasionally, for the sake of variety, I may publish articles featuring "sell" ratings.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CPA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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