Lake Street starts Sky Harbor with Buy, $14 target

Monday, Lake Street Capital Markets began covering Sky Harbor Group (NYSE:SKYH) with a Buy rating and set a price target of $14.00, joining other analysts who maintain price targets ranging from $12 to $25. The firm identified strong demand tailwinds for the company, which specializes in private jet storage. According to InvestingPro data, analysts maintain a bullish consensus on the stock, despite its recent volatility. Lake Street Capital Markets’ analysis points to a significant expansion in the executive aviation fleet and a structural imbalance between the growth of aircraft and available infrastructure as key drivers for Sky Harbor’s business prospects.

Sky Harbor Group stands to gain from the accelerating demand for private jet storage across the United States, with InvestingPro data showing impressive revenue growth of 102% in the last twelve months. Over the past decade and more, the U.S. business jet fleet has seen its physical footprint expand by over 36 million square feet, marking a 61% increase. The growth has been even more pronounced for large private jets, which have seen a 102% increase in footprint. This trend is anticipated to continue, with projections estimating up to 8,500 new business jet deliveries from 2025 to 2034. Notably, over two-thirds of these deliveries are expected to be large aircraft, which require more space.

The current landscape of hangar development has not kept up with the rapid growth of the executive aviation sector, particularly for larger jets. Many airports are currently grappling with outdated or undersized facilities, leading to chronic shortages and multi-year waiting lists for storage space. This mismatch between high demand and low supply presents a unique opportunity for companies like Sky Harbor to capitalize on the market’s needs.

In their coverage initiation, Lake Street Capital Markets underscored this point, highlighting the ripe conditions for disruption in the private jet storage market. While the company’s overall financial health score is currently rated as WEAK by InvestingPro, with the stock trading near its Fair Value, the analyst commented on the favorable environment for Sky Harbor, noting the potential for the company to address the pressing needs of the executive aviation industry effectively. InvestingPro subscribers have access to 10 additional key insights about SKYH’s market position and growth potential.

Sky Harbor Group’s shares will be watched closely by investors as the market responds to Lake Street Capital Markets’ positive outlook and the company’s strategic position in a sector with growing demand and limited supply. For a comprehensive analysis of SKYH’s market position, growth metrics, and detailed valuation analysis, investors can access the full Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with deep-dive analysis and actionable insights.

In other recent news, Sky Harbour Group Corp. reported a substantial increase in revenue for the first quarter of 2025, with a year-over-year growth of 133% and a sequential rise of 20%. The company has ambitious plans for expansion, aiming to have 23 campuses operational by the end of 2025. Sky Harbour also anticipates reaching cash flow breakeven by the end of the year. To support its growth, the company is preparing for a $150-175 million debt issuance. Analyst firms such as B. Riley Securities and Noble Capital Markets have shown interest in the company’s strategic initiatives. Sky Harbour’s unique business model, focusing on vertical integration and expansion, positions it strongly in the market. The company has no direct competitors in its niche, which may provide a competitive advantage. However, macroeconomic pressures and potential regulatory changes remain challenges for the company.

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