Evercore ISI Upgrades SkyWest (SKYW) Stock to Outperform

SkyWest, Inc. (NASDAQ:SKYW) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Evercore ISI analyst Duane Pfennigwerth upgraded the company’s stock to “Outperform” from “In Line” with a price objective of $120, as reported by The Fly. The upgrade comes as the company experiences robust demand from legacy airline customers, as per Evercore ISI.

As per the firm’s analyst, pilot production continues to exceed expectations because of reduced attrition rates, which addresses the critical constraint in the post-COVID recovery period. Furthermore, SkyWest, Inc. (NASDAQ:SKYW) is also finding creative growth opportunities for the existing fleet. Also, legacy carriers have been prioritizing the restoration of hub capacity and are relying on SkyWest, Inc. (NASDAQ:SKYW), considering its demonstrated reliability over the previous 5 years.

Also, Evercore ISI noted that the company’s net debt and leverage remain at the lowest levels in more than a decade and continue to decrease. Furthermore, aircraft debt for a significant portion of the E175 fleet is expected to be fully amortized in 2026, which the firm opines can offer more favorable FCF dynamics.

SkyWest, Inc. (NASDAQ:SKYW), through its subsidiaries, is in the operation of a regional airline in the US.

While we acknowledge the potential of SKYW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.