In a research report released Monday, Imperial Capital analyst Bob Mcadoo maintained a Hold rating on Hawaiian Holdings (NASDAQ:HA) with a $24 price target, following the company’s fourth-quarter results, posting revenues of $2.3bn and EPS of $1.59 during the latest 12 months ended 12/31/14.
Mcadoo noted, “In our view, last week’s decline in HA shares represents an overreaction and HA shares are likely to trade back to recent levels as we move towards seasonally stronger 2Q. We expect Hawaiian to benefit from lower fuel prices in 2015, as will the rest of the industry. The combination of fuel cost savings and meaningfully lower capex in 2015 and 2016 suggests capital return to shareholders is possible, albeit with further deleveraging rather than more direct methods. Longer term, we remain somewhat hesitant given HA’s substantial future aircraft order book and potentially limited new market opportunities. Our $24 price target, while consistent with trading in recent weeks, is 23% above last session’s trading levels.”
Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., is engaged in the scheduled air transportation of passengers and cargo.