3 airline shares to buy from Seaport Global

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Seaport Global has started the operation of seven aircraft, 3 of which are expected to be purchased through investors.

Daniel McKenzie started the following passenger aircraft:

Alaska Air Group, Inc. (NYSE: ALK) for purchase, with a target value of $53.

Purchase of Allegiant Travel Company (NASDAQ: ALGT), with a target value of $166.

Blue SA (NYSE: BLUE) to Neutral, aimless.

Copa Holdings, S. A. (NYSE: CPA) to Neutral, without value objective.

Delta Air Lines, Inc. (NYSE: DAL) for purchase, with a target value of $43.

Gol Linhas Aereas Inteligentes SA (NYSE: GOL) to Neutral, aimless.

Hawaiian Holdings, Inc. (NASDAQ: HA) to Neutral, with no value objective.

The thesis: The airline industry is showing the first symptoms of recovery, though “weak,” McKenzie wrote in a note. The combination of fleet simplification, rate restructuring and core network strengths is sufficient to unlock a sustainable profit recovery. .

Passenger planes will begin their “balance repair” projects, but the recovery of more curtains will have the good fortune of a coronavirus vaccine, the analyst wrote.

Bullish notes

Alaska Air: If Alaska Air is 20% smaller in length and reach until the summer of 2021, the company will still be able to generate a year-round “small” benefit and exceed consensus estimates.

Beyond 2021, the company can leverage its new partnership with OneWorld, percentage gains at key centers, and a new core economic product to show a monetary recovery.

Allegiant: Allegiant is expected to record a strong profit expansion in a post-COVID world, i. e. for passenger planes that focus on recreational travel. The company’s focus on operational innovations provides convenience to investors involved in future pricing.

Delta: Consensus estimates that it “underestimates” Delta’s ability to recover from the pandemic and show strong effects and indicators of money loss. The company continues to resize its network and simplify its cargo design to become a more effective and more effective cargo passenger aircraft.

Delta controls a market percentage of 70% or more at 4 of its five centers, giving it structural merit in terms of earnings over its peers, the analyst wrote. The company ended the quarter of the moment with about $16 billion in cash, implying that it is “in better shape” for current investor sentiment.

Neutral notes

Blue: Azul’s shares in Brazil have earned more than 200% of their 52-week lows and for a smart reason. Corporate merit credits for the restructuring of positions, the transformation of the fleet, a new code shared with national competitors, a boost at the top level. margin freight sector, among others.

But investors will have to be cautious before imaginable capital accumulates that would be costly and lead to a dilution of capital.

Cup: Copa operates a hub and an airline from Panama City and is the “most productive house in a difficult neighborhood,” the analyst wrote. The company is among the most operationally and monetaryly productive and has many benefits, even in two or 3 years.

In the meantime, symptoms of a more visual recovery are needed in the region’s call-up before bullish in the Cup.

Goal: Gol is a cheap Brazilian aircraft that is gaining a market percentage over a key competitor undergoing Chapter 11 reorganizations, the analyst wrote. Once the call is standardized, Gol will be in a better position to serve the sixth largest national aviation market in the world.

The company faces short-term concerns, adding reports of a capital accumulation and operational sigma in a “bad neighborhood. “

Hawaiian Holdings: Hawaiian continues to face competitive and demanding margin situations and investors can locate other airline stocks that pose a greater danger to praise profiles, the analyst wrote. a bachelor center in Honolulu.

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