Shares of Sun Country Airlines Holdings Inc. ( SNCY ) hit a 52-week high of $16.39, marking a significant milestone for the $829 million market cap airline in a challenging year for the travel industry. According to InvestingPro data, analysts see further upside potential with a price target as high as $24. This peak reflects a strong recovery, with the share price surging as the company capitalizes on the recovery in air travel demand. Trading at a P/E ratio of 19.2, InvestingPro analysis suggests the stock remains undervalued despite recent gains. Over the past year, Sun Country Airlines has seen an impressive 16.97% increase in its stock value, indicating high investor confidence and a positive outlook for the company’s future operations. Discover more insights and 8 additional ProTips for SNCY with a subscription to InvestingPro, including exclusive access to a comprehensive Pro Research Report that covers what really matters for smarter investment decisions.
In other recent news, Sun Country Airlines Holdings reported mixed results for the third quarter of 2024. The airline’s total revenue for the third quarter of 2024 was $249.5 million, mirroring the prior year numbers. Despite a 3% decline in passenger revenue and a 5.9% decline in scheduled service revenue, cargo revenue reached a record $29.2 million, an 11.9% increase. Sun Country plans to add five leased Oman aircraft by the end of 2024.
Recently, Goldman Sachs continued coverage on the company, assigning a Neutral rating to its stock. The company highlighted the airline’s potential for margin growth through 2025, driven by an improved pilot staff and expanded cargo service through a lucrative deal with Amazon (NASDAQ: ). Goldman Sachs expects Sun Country’s free cash flow to grow over the medium term, supported by the airline’s current fleet and unique business model.
Looking ahead, Sun Country expects fourth-quarter revenue of between $250 million and $260 million, with an operating margin of 7% to 9%. Although share buybacks are not planned, this possibility will be considered in 2025. These developments are part of the airline’s recent activities and strategic plans.
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