Copa Holdings, Rating Lowered to Equal Weight at Morgan Stanley (CPA)
Copa Holdings, (NYSE:CPA) was downgraded by stock analysts at Morgan Stanley from an “overweight” rating to an “equal weight” rating in a report issued on Thursday. They currently have a $142.00 price objective on the stock, down from their previous price objective of $163.00. Morgan Stanley’s price target suggests a potential upside of 15.29% from the stock’s previous close.
The analysts wrote, “We cut CPA’s numbers to reflect a more negative margin impact from a ~50% capacity reduction in Venezuela. We assume 15.8% EBIT margin in the 2H14e and 17.5% in 2015e (down from 18% and 20% previously). Our CPA route analysis since mid-2013 (see pages 6-7) shows a ~50% cut in Venezuelan capacity, redeployed to other countries in South (Brazil, Chile, Peru), Central (Costa Rica, Nicaragua, Cuba, Dominican Republic), and North America (Mexico, US, Canada). Despite successful capacity relocation, we see a negative margin impact on CPA, with lower Venezuela sales given its higher fares and positive FX translation at the official rate. With lower earnings/margins next year, we see limited catalysts for CPA, despite an attractive 13x P/E.”
Shares of Copa Holdings, (NYSE:CPA) traded down 0.16% on Thursday, hitting $122.975. The stock had a trading volume of 58,821 shares. Copa Holdings, has a 52-week low of $121.11 and a 52-week high of $162.83. The stock’s 50-day moving average is $138.8 and its 200-day moving average is $138.9. The company has a market cap of $5.461 billion and a P/E ratio of 10.75. Copa Holdings, also saw a significant increase in short interest in August. As of August 15th, there was short interest totalling 817,907 shares, an increase of 57.5% from the July 31st total of 519,420 shares. Approximately 0.0% of the shares of the stock are short sold. Based on an average daily trading volume, of 797,907 shares, the days-to-cover ratio is presently 1.0 days.
Copa Holdings, (NYSE:CPA) last announced its earnings results on Wednesday, August 6th. The company reported $2.61 earnings per share for the quarter, beating the analysts’ consensus estimate of $2.22 by $0.39. The company had revenue of $673.60 million for the quarter, compared to the consensus estimate of $673.02 million. During the same quarter last year, the company posted $1.92 earnings per share. Copa Holdings,’s revenue was up 13.8% compared to the same quarter last year. On average, analysts predict that Copa Holdings, will post $10.87 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Monday, September 15th. Shareholders of record on Friday, August 29th will be given a dividend of $0.96 per share. This represents a $3.84 dividend on an annualized basis and a yield of 3.12%. The ex-dividend date of this dividend is Wednesday, August 27th.
A number of other firms have also recently commented on CPA. Analysts at Zacks downgraded shares of Copa Holdings, from a “neutral” rating to an “underperform” rating in a research note on Thursday, August 21st. They now have a $126.20 price target on the stock. Separately, analysts at JPMorgan Chase & Co. raised their price target on shares of Copa Holdings, from $163.00 to $168.00 in a research note on Friday, August 15th. They now have an “overweight” rating on the stock. Finally, analysts at Deutsche Bank cut their price target on shares of Copa Holdings, from $180.00 to $165.00 in a research note on Friday, August 8th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company. Copa Holdings, currently has a consensus rating of “Hold” and an average target price of $157.20.
Copa Holdings, SA (NYSE:CPA) is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia.
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