Goldman Sachs analyst Catherine O’Brien resumed coverage of SkyWest with a Sell rating and $15 price target. While positive on the backdrop for airlines, the analyst says the economic outlook is uncertain. In this environment, she favors stocks with "idiosyncratic earnings drivers, relatively more recovery tailwinds remaining, or characteristics that reduce downside risk." O’Brien expects SkyWest’s margins to remain below historical levels and sees risk that its mainline partners move more flying to the mainline from regional given a narrowing in the pilot pay gap.
Published first on TheFly
