Copa Holdings (CPA)

Our PAST TOP PICK with CPA has triggered its stop at $118.  To remain disciplined, we recommend covering the position at this time.  Combined with previous guidance, this will result in a net investment gain of 3%.  

We again reiterate CPA, a Panama based passenger and cargo airline provider to Latin America as a TOP PICK.  Load factors continue to grow (86%).  It trades at 8x earnings, 2x book and supports a ROE of 26%.  Cash reserves are growing, while debt is retired.  Its dividend is backed by a payout ratio under 50% of cash flow.  We recommend trailing up the stop (from $107) to $118, looking to achieve $156 -- upside potential of 22%.  Yield 5.1%

We reiterate CPA, a leading Latin American provider of passenger and cargo services in North, Central, and South America and the Caribbean, as a TOP PICK.  Recently reported earnings showed a 24% increase in net income and EPS and August load factors continue to edge up -- now exceeding 88%.  We like that cash reserves are growing, while shares are bought back and keeping dividend payout ratios under 50% of cash flow.  We continue to recommend a stop at $107, looking to achieve $153 -- upside potential of 30%.  Yield 5.5%

With aircraft load factors increasing over 87%, we reiterate CPA as a TOP PICK.   The Panama based airline announced a network expansion into San Diego, CA.  Cash reserves are growing, while shares are bought back.  It trades at 8x earnings, under 2x book and supports a healthy 26% ROE.  Its dividend is backed by a payout ratio under 50% of cash flow.  We recommend trailing up the stop (from $95) to $107, looking to achieve $154 -- upside potential of 31%.  Yield 5.5% 

As North American air travel is expected to hit an all time record high, we reiterate CPA as a TOP PICK.  Analysts like that the company operates with only 737s to service its Latin-American destinations -- keeping operations lean and mean.  It trades at 8x earnings, under 2x book and supports a 26% ROE.  It's good dividend yield is backed by a payout ratio under 50% of cash flow.  We recommend trailing up the stop (from $83) to $95, enroute to a target of $144 -- upside potential of 28%.  Yield 5.6%

This central American airline trades at 6x earnings, 1.8x book and supports a robust 27% ROE.  Recently reported earnings showed 10% growth in passenger miles over a year ago.  Its dividend is backed by a payout ratio under 50% of cash flow.  We recommend setting a stop-loss at $83, looking to achieve $131 -- upside potential of 28%.  Yield 6.3%

Our PAST TOP PICK with CPA has triggered its stop at $86.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 8%, when combined with our previous guidance.    

We reiterate this Panama based airline for Latin America as a TOP PICK.  Recent data shows the airline utilization rates along with revenue per passenger mile continued to grow last mont.  We like that cash reserves are growing, shares trade at 5x earnings, under 2x book and supports a ROE of 27%.  The robust yield is backed by a payout ratio under 50% of cash flow.  We continue to recommend a stop at $86, looking to achieve $118 — upside potential of 28%.  Yield 7.0%

Copa Holdings, S.A., through its subsidiaries, provides airline passenger and cargo services. The company offers approximately 204 daily scheduled flights to 69 destinations in 29 countries in North, Central, and South America, as well as the Caribbean from its Panama City hub. As of December 31, 2021, it operated a fleet of 91 aircraft comprising 77 Boeing 737-Next Generation aircraft and 14 Boeing 737 MAX 9 aircraft. Copa Holdings, S.A. was founded in 1947 and is based in Panama City, Panama. Social media mentions are up 167% in the past 24h.

We reiterate this Latin American airline as a TOP PICK.  Analysts see demand for air travel continuing to rise, while fuel prices dropped by over 10% on average last quarter -- this should be bullish for their upcoming earnings.  We like that cash reserves are growing as the stock trades at 6x earnings, under 2x book and supports a 35% ROE.  We recommend trailing up the stop (from $78) to $86 looking to achieve $125 -- upside potential of 28%.  The dividend is backed by a payout ratio under 35% of cash flow.  Yield 4.8%  

We reiterate this Panama City based airline, operating 110 aircraft on 375 daily flights as a TOP PICK.  We like that quarterly cash reserves are growing once again and air flight demand is growing.  It trades at 6x earnings, under 2x book and supports a 35% ROE.  The dividend is backed by a payout ratio under 30% of cash flow.  We recommend maintaining the stop at $78, looking to achieve $120 -- upside potential of 28%.  Yield 5.4%

CPA operates over 100 aircraft serving South America.  Pent up air travel demand is leading to an ROE of 35%, while the shares trade at 6x earnings and under 2x book value.  The good dividend is backed by a payout ratio under 30% of cash flow.  We recommend setting a stop-loss at $78, looking to achieve $117 -- upside potential of 28%.  Yield 5.4%