JPMorgan raised the firm’s price target on Volaris to $18 from $17.50 and keeps an Overweight rating on the shares. Volaris has been able to compensate lower capacity with yield, network and costs management, benefiting from a supportive demand environment in Mexico, the analyst tells investors in a research note. On the negative side, the visibility on earnings momentum is more limited when compared to the rest of the sector as the maintenance of planes powered by Pratt & Whitney engines is an ongoing situation, says the firm. It believes negative news is priced into the stock, however.
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