In a report published by Deutsche Bank, SkyWest SKYW was upgraded to Buy on improved earnings outlook.
Deutsche Bank reported that it is raising its rating on SKYW shares from Hold to Buy to reflect an improved earnings outlook driven by the acquisition of ExpressJet. “As such, we are estimating EPS accretion of $0.45-$0.50 from the deal by 2012. Also, we estimate that about 90% of SkyWest's revenue is tied to capacity purchase contracts which essentially have little to no exposure to fuel price volatility. Consequently, SKYW is currently our only stock under coverage where estimates are going up despite the recent surge in energy prices. Hence our rating revision to Buy.”
SkyWest closed on Friday at $15.91.
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