Wheels Up: Encouraging Signs Of A Turnaround, But Potential Recession On The Horizon
Summary
- Wheels Up's turnaround shows progress with reduced adj. EBITDA losses, but the company still operates at a loss and faces cash runway concerns.
- Management's fleet renewal plan aims to boost demand but involves significant capital investments, risking further stock dilution and financial strain.
- Despite a 60% stock decline, Wheels Up's valuation remains high compared to peers, making it an unattractive investment.
- With potential economic recession risks, I continue to recommend investors avoid UP.
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