Sun Country Airlines upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research upgraded Sun Country Airlines (SNCY) to Outperform from Peer Perform with a $14 price target. Despite maintaining higher-end margins in the industry, Sun Country is the worst performing airline stock in the analyst’s coverage this year, excluding Spirit Airlines (SAVE), the analyst tells investors. With its changing mix heading into 2025, Sun Country’s strong free cash flow and low-end valuation are “increasingly compelling” and the firm is looking ahead to accretive mix changes next year after this year’s underperformance, the analyst tells investors.