In a report released today, Scott Buck from B.Riley FBR initiated coverage with a Buy rating on Mesa Air Group Inc (MESA) and a price target of $16. The company’s shares closed yesterday at $9.41.
Buck commented:
“We are initiating coverage of Mesa Air Group, Inc. (MESA), the fourth-largest U.S. regional airline, with a Buy rating and a 12-month price target of $16 per share. We see multiple opportunities for the large discount to the group to be reduced, as MESA emerged from bankruptcy with a lower cost structure and the ability to pay down debt, which we expect to substantially reduce interest expense over time. The stock seems to have been punished by concern regarding the renewal of the company’s contract with United Airlines (which is only a fraction of the United business). As MESA continues to execute, we believe it can win new business that is not currently factored into our or Street estimates.”
According to TipRanks.com, Buck is ranked #4496 out of 5238 analysts.
Mesa Air Group Inc has an analyst consensus of Hold.
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Mesa Air Group Inc’s market cap is currently $263.2M and has a P/E ratio of 8.56. The company has a Price to Book ratio of 0.64.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MESA in relation to earlier this year.
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