VLRS - Key Factors Driving Volaris' Success In The Aviation Market
2024-04-27 07:08:38 ET
Summary
- Controladora Vuela Compañía de Aviación delivered better than expected EPS and quarterly results.
- Analysts are expecting EPS growth for Q3 2024.
- Recent capex growth, bus to air conversion, internationalization efforts, and network growth could accelerate net income growth in the coming years.
- I believe that the company remains quite cheap at its current stock valuation.
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. ( VLRS ) recently delivered better than expected EPS and quarterly net sales. In addition, EPS growth is expected for Q3 2024. I believe that increases in the amount of capital expenditures expected, bus to air conversion, internationalization efforts, and network growth could accelerate net income growth in the coming years. There are some risks with respect to the crude oil price, lower net sales growth than expected, or failed international expansion. With that, my DCF models implied significant upside potential in the stock price.
Controladora Vuela Compañía de Aviación
Controladora Vuela Compañía de Aviación, also known as Volaris in its commercial brand, is a flight operator of Mexican origin, currently the largest in the country's domestic market....
Key Factors Driving Volaris' Success In The Aviation Market