Hawaiian Holdings, the parent company of Hawaiian Airlines, could be gearing up for an incredible 229% rally, according to leading Wall Street analysts.
Share prices for the airline closed at $4.86 on Friday, but Deutsche Bank analyst Michael Linenberg sees them soaring to $16 in the near future. He upgraded the stock from Hold to Buy and raised his price target accordingly.
If Linenberg’s bullish forecast proves accurate, early investors in Hawaiian Holdings stand to bank massive triple-digit returns.
But what’s behind this stunning vote of confidence in the regional carrier? And should you rush to grab shares before what some are calling an imminent parabolic “moonshot” rally?
Keep reading to discover why top experts believe Hawaiian Holdings is set to erupt.
Hawaiian Holdings Turns a Corner After Brutal Pandemic Years
The past three years have been an absolute bloodbath for airlines like Hawaiian Holdings.
The COVID-19 pandemic bludgeoned global travel demand, leaving once-busy flights empty and balance sheets soaked in red ink.
Hawaiian Holdings was no exception. The company suffered heavy losses as tourism to its island namesakes evaporated almost overnight.
But now the beleaguered regional airline seems to be getting its wings back beneath it at last.
Hawaii relaxed its entry requirements for travelers in recent months, unleashing a flood of pent-up vacation demand. Flights in and out of the island chain are filling up once more.
The company’s bottom line is healing as well. Hawaiian Holdings swung to a Q3 profit of $29.4 million from a $59.7 million loss last year. Its operating revenue surged more than 80% to $765 million.
This long-awaited comeback has analysts like Michael Linenberg scrambling to upgrade the stock. In his view, Hawaiian Holdings has ample room to continue clawing back pandemic losses as travel normalizes further.
Its niche focus on Hawaii also grants it pricing power and loyalty that giants like Delta and American lack. Over 40% of the carrier’s routes are without direct competition.
$16 Price Target Suggests Massive Upside Ahead
Deutsche Bank’s lofty $16 price target implies shares could practically triple from current levels around $4.86.
A rally of that magnitude works out to a staggering 229% windfall that could turn a $10,000 stake into nearly $33,000.
Of course, such upside projections always carry risk. But given Hawaiian Holdings’ improving situation, history of profitability prior to 2020, and the continuing travel rebound, a triple-digit percentage surge doesn’t seem so far-fetched.
The Bottom Line
After bearing the brunt of COVID’s economic devastation, Hawaiian Holdings finally appears ready for takeoff again.
Top experts like Michael Linenberg see shares rocketing 229% towards the $16 level on the back of Hawaii’s ongoing tourism revival.
Savvy investors seeking explosive growth plays should consider swooping in while Wall Street’s spotlight remains elsewhere.
The window of opportunity likely won’t stay open for long. Once the herd catches the scent of profits on those coconut-scented trade winds, shares could leave skeptics stuck on the tarmac.
*This article expresses the author’s opinions only. Investors are encouraged to conduct their own research before making any investment decisions. The author does not provide personalized advice or recommendations.