Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Citi has reiterated a Buy rating and $159.00 price target on Copa Holdings (NYSE:CPA), citing solid June traffic statistics that aligned with the firm’s positive expectations. The stock, currently trading at a P/E ratio of 7.58 and offering a 5.83% dividend yield, appears undervalued according to InvestingPro analysis.
Copa Holdings reported that its June system-wide passenger traffic, measured in revenue passenger miles (RPMs), increased 6.3% year-over-year, while capacity, measured in available seat miles (ASMs), grew 5.3% during the same period.
The Panamanian carrier’s load factor edged up 0.8 percentage points to 87.5% for the month, indicating that demand growth outpaced capacity increases.
For the April through June period, Copa’s accumulated RPM growth reached 6.4% year-over-year with an 87.2% load factor, compared to Citi’s second-quarter 2025 estimate of 7% RPM growth on an 86.8% load factor.
Citi identified Buy-rated Copa as its preferred carrier in the Americas, with the firm’s analyst noting that underlying demand continues to outpace capacity increases.
In other recent news, Copa Holdings reported a 6.3% increase in system-wide passenger traffic for June 2025 compared to the same month last year. The company’s available seat miles, a measure of passenger carrying capacity, rose by 5.3% to 2,654.3 million. Revenue passenger miles increased to 2,322.3 million from 2,185.1 million in the prior-year period. Additionally, Copa Holdings’ load factor improved to 87.5%, up 0.8 percentage points from June 2024. In related developments, TD Cowen reiterated its Buy rating on Copa Holdings and increased its price target from $140.00 to $144.00. The firm cited the airline’s solid first-quarter results for 2025, highlighting its effective cost control measures and diverse network. TD Cowen’s analysts expressed confidence in the airline’s future financial performance, suggesting potential for upside in earnings per share forecasts. They also anticipate the possibility of a dividend increase in 2026, assuming no unforeseen negative developments.
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