ALOT - AstroNova: Air Traffic Recovery Offset By Supply Chain Headwinds
- Since the start of the pandemic, the ARCA Airline index is down 7% while ALOT is up 18%.
- Earnings results are still impacted by supply chain challenges and inflation. But a new product launch and price increases should improve results.
- While air traffic is recovering, US traffic is still 31% below pre-pandemic levels. Expect full air traffic recovery by 2023 in North America and by 2024 globally.
- My target price decreased from $17.00 to $14.20 mainly driven by the increased cost of capital. I recommend building a position below $10.50.
For further details see:
AstroNova: Air Traffic Recovery Offset By Supply Chain Headwinds