SkyWest upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank analyst Michael Linenberg upgraded SkyWest to Buy from Hold with a $46 price target. The analyst expects a “significant improvement” in the company’s return on invested capital over the next three years. For 2022, the airline produced a ROIC that was middle of the pack and margins that were only slightly better than average, the analyst tells investors in a research note. However, the firm thinks SkyWest could meaningfully outperform the industry in ROIC improvement for 2023 – 2025, setting the shares up well.