Sun Country Airlines Holdings Inc. (SNCY) stock reached a 52-week high of $16.39, marking a significant milestone for the $829 million market cap airline amidst a challenging year for the travel industry. According to InvestingPro data, analysts see further upside potential with price targets reaching as high as $24. This peak reflects a robust recovery, with the stock price soaring as the company capitalizes on the rebound in air travel demand. Trading at a P/E ratio of 19.2, InvestingPro analysis suggests the stock remains undervalued despite its recent gains. Over the past year, Sun Country Airlines has seen an impressive 16.97% increase in its stock value, indicating strong investor confidence and a positive outlook for the company's future performance. Discover more insights and 8 additional ProTips for SNCY with an InvestingPro subscription, including exclusive access to the comprehensive Pro Research Report covering what really matters for smarter investment decisions.
In other recent news, Sun Country Airlines Holdings reported mixed results for the third quarter of 2024. The airline's total revenue for Q3 2024 was $249.5 million, mirroring the previous year's figures. Despite a decrease in passenger segment revenue by 3% and scheduled service revenue by 5.9%, the cargo segment revenue hit a record $29.2 million, marking an 11.9% increase. Sun Country plans to add five leased Oman aircraft by the end of 2024.
Recently, Goldman Sachs resumed coverage on the company, assigning a Neutral rating to its shares. The firm highlighted the airline's potential for margin growth into 2025, driven by improved pilot staffing and an expanded cargo service through a lucrative contract with Amazon (NASDAQ:AMZN). Goldman Sachs anticipates an uptick in Sun Country's free cash flow over the medium term, supported by the airline's current fleet and unique business model.
Looking ahead, Sun Country projects Q4 revenue between $250 million and $260 million, with an operating margin of 7% to 9%. While share buybacks are not in the immediate pipeline, the possibility will be reviewed in 2025. These developments are part of the airline's recent activities and strategic plans.
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