Goldman Sachs reaffirms neutral rating and $119 price target for SkyWest in recent research note

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SKYWEST ($NASDAQ:SKYW): SkyWest, also known as SkyWest Airlines, is a leading regional airline that operates as a subsidiary of SkyWest, Inc. The company, based in St. George, Utah, provides scheduled passenger and air freight services to various destinations within the United States, Canada, Mexico, and the Caribbean. On Friday, The Goldman Sachs Group released a research note reaffirming their “neutral” rating on SkyWest’s stock and setting a price target of $119.00. This indicates that the investment bank expects the stock to perform in line with the overall market and reach a price of $119.00 per share. The reaffirmation of the “neutral” rating suggests that Goldman Sachs does not anticipate any major changes or developments for SkyWest in the near future. This is supported by the fact that the rating was already in place prior to the recent research note.

However, the establishment of a price target of $119.00 reflects some potential upside for the stock. Goldman Sachs’ research note also highlights some key factors that could impact SkyWest’s performance in the coming months. These include ongoing fuel cost pressures, potential changes in government regulations, and competitive pressures from other airlines.

Additionally, the note mentions potential opportunities for SkyWest to expand its fleet and routes through partnerships with larger airlines. In conclusion, Goldman Sachs’ reaffirmation of a “neutral” rating and establishment of a price target for SkyWest’s stock suggests a relatively stable outlook for the company in the near term. However, investors should pay attention to potential market and industry developments that could impact SkyWest’s performance in the future.

Share Price

This reaffirmation comes as no surprise, as the stock opened at $111.19 and closed at $111.33 on Friday, showing a slight increase of 0.47% from the previous closing price of $110.81. The neutral rating from Goldman Sachs suggests that they do not expect significant changes in SkyWest‘s performance in the near future. This could be due to a number of factors, such as the company’s current financial standing, market conditions, and industry trends.

However, it is worth noting that a neutral rating does not necessarily mean the stock is expected to underperform. Instead, it indicates that the stock is expected to perform in line with the overall market. The price target of $119 set by Goldman Sachs also suggests that they believe SkyWest’s stock is currently valued appropriately. In other words, they do not see any significant room for growth or decline in the stock price. This target is based on a thorough analysis of various factors, including the company’s financial performance, competitive landscape, and potential risks. Investors should keep in mind that ratings and price targets from research firms are not set in stone. They are subject to change based on any new developments or changes in market conditions. This news may not have much impact on the stock in the short term, but investors should continue to monitor any changes in the company’s performance and updates from research firms in order to make informed investment decisions. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Skywest. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Skywest. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Skywest. More…

Key Ratios Snapshot

Some of the financial key ratios for Skywest are shown below. More…

Analysis

As an analyst at GoodWhale, I was tasked with analyzing the financials of SKYWEST, a regional airline company. After carefully reviewing the information provided, I have determined that SKYWEST has an intermediate health score of 6/10 on our Star Chart. This indicates that the company is reasonably stable and is likely to sustain its operations during times of crisis. One of the key areas I looked at was SKYWEST’s cashflows and debt. The company has a moderate score in this category, indicating that it has a decent amount of cash flow and manageable levels of debt. This is a positive sign as it shows that SKYWEST is able to meet its financial obligations and has the potential to invest in future growth. In terms of assets, SKYWEST has a strong score. This means that the company has a solid base of assets that can be used to generate revenue. However, SKYWEST received a weak score in growth, dividend, and profitability. This suggests that while the company may have a strong asset base, it may not be utilizing it effectively to generate growth or returns for investors. Based on our analysis, we have classified SKYWEST as a “rhino” type of company. This means that it has achieved moderate revenue or earnings growth, but may not be considered a high-growth company. While this may not be appealing to investors seeking high returns, it can still be attractive to those looking for steady and stable investments. In summary, SKYWEST appears to be a reasonably stable company with a decent cash flow and manageable debt levels. It also has a strong asset base but may need to work on improving its growth, dividend, and profitability to attract more investors. Therefore, I would recommend SKYWEST to investors who are looking for a stable and moderate-growth company in the aviation industry. More…

Peers

SkyWest Inc is up against some formidable competitors, such as Spirit Airlines Inc, Southwest Airlines Co, and Korean Air Lines Co Ltd. Each of these companies has their own unique strengths and strategies, making the competition to stay ahead in the airline industry fierce.

– Spirit Airlines Inc ($NYSE:SAVE)

Spirit Airlines Inc is an ultra-low-cost carrier airline based in the United States. It has a market cap of 2.14 billion as of 2022, making it one of the smaller airlines in the industry. Although its market capitalization is relatively small, its Return on Equity (ROE) is -11.91%, which is lower than the average in the industry. This indicates that Spirit Airlines is struggling to generate profits and leaves investors with little reward for their investment. The company has been attempting to improve its financial performance by cutting costs, modernizing its fleet, and expanding its network. Despite these efforts, it has still been unable to turn a profit.

– Southwest Airlines Co ($NYSE:LUV)

Southwest Airlines Co is an American low-cost airline headquartered in Dallas, Texas. Founded in 1971, it is one of the largest domestic airlines in the United States. The company has a market cap of 21.43 billion dollars as of 2022, and a Return on Equity (ROE) of 8.2%. This indicates that for every dollar invested in the company, Southwest Airlines has generated 8.2 cents of profit. The company’s strong financial performance is reflective of its commitment to providing reliable, affordable air travel in the United States.

– Korean Air Lines Co Ltd ($KOSE:003490)

Korean Air Lines Co Ltd is a major airline based in South Korea. It operates domestic and international flights to over 130 destinations in Asia, Europe, North America, South America, and Oceania. As of 2022, Korean Air Lines Co Ltd has a market capitalization of 9.02 trillion, making it one of the largest airlines in the world. In addition to its large market capitalization, Korean Air Lines Co Ltd has an impressive Return on Equity (ROE) of 22.94%, indicating that it is an efficient and profitable company.

Summary

Investment analysis on SkyWest indicates a “neutral” rating with a price target of $119.00 per share. This suggests that the company’s stock is expected to perform in line with the market. This assessment is made by Goldman Sachs Group, a leading financial institution.

While this analysis does not provide specific details on the company’s performance or future prospects, it suggests that SkyWest may not have significant potential for growth or decline in the near future. Investors should consider this rating and price target when making decisions about buying or selling SkyWest stock.