Sun Country Airlines: Risk Shielded Business And Growth Make The Stock A Buy

(6min)

Summary

  • Sun Country Airlines has mechanisms to shield financial results, resulting in a 23% stock gain, outperforming the S&P 500's 16% gain.
  • Despite flat third quarter revenues, the company is shifting capacity from scheduled services to charter and cargo, enhancing future performance.
  • I'm increasing my price target for Sun Country Airlines by 17% to $18.28, citing strong growth prospects and improved EBITDA estimates.
  • I continue to rate Sun Country Airlines a buy, appreciating its strategic adjustments and potential for significant free cash flow growth by 2026.
  • Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More »

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Sun Country Airlines (NASDAQ:SNCY) is one of the airlines that I believe is positioned quite well despite the pressure on unit revenues. As I discussed in a prior report, the company has various

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This article was written by

Dhierin Bechai profile picture
17.71K Followers

Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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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