Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

Copa Holdings Sa Class A / Equity Bottom-Up

<ul><li>Copa Holdings' second quarter earnings call highlighted strong performance amidst challenges, bolstering its position as a leader in Latin American aviation.</li><li>The company reported impressive operational and financial results, with a significant financial highlight being a net profit of $120.3 million, corresponding to $2.88 per share.</li><li>Notably, Copa Holdings achieved an operating margin of 19.5%, crediting this robust quarterly performance to numerous strategic and operational efficiencies.</li></ul>

Copa Holdings' second quarter earnings call highlighted strong performance amidst challenges, bolstering its position as a leader in Latin American aviation.The company reported impressive operational and financial results, with a significant financial highlight being a net profit of $120.3 million, corresponding to $2.88 per share.Notably, Copa Holdings achieved an operating margin of 19.5%, crediting this robust quarterly performance to numerous strategic and operational efficiencies.

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Key points<ul><li>Copa Airlines consistently pays dividends, setting it apart from other airlines.</li><li>The airline's competitive advantage lies in its strategic location in Panama City and its hub-and-spoke model, facilitating efficient connections between North and South America.</li><li>Despite the challenges of the airline industry, Copa has outperformed its competitors in generating value and is projected to have significant upside potential in both the short and long term.</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key pointsCopa Airlines consistently pays dividends, setting it apart from other airlines.The airline's competitive advantage lies in its strategic location in Panama City and its hub-and-spoke model, facilitating efficient connections between North and South America.Despite the challenges of the airline industry, Copa has outperformed its competitors in generating value and is projected to have significant upside potential in both the short and long term.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Copa Holdings Sa (CPA) - Thursday, Nov 16, 2023

Founder & Managing Director, AIR Control Tower, AIR Control Tower

Neil Glynn

Founder & Managing Director, AIR Control Tower

AIR Control Tower

AIR Control Tower is an independent research and analysis platform. Its mission is to provide impactful insight and analysis across the global airline industry at a company and market level via detailed financial models to aid decision making for key stake holders at a time when risks have seldom, if ever, been higher and the global sector grapples with the imperative of funding de-carbonisation. Unique analysis forecasting global carrier-level earnings/cash flows, and restructuring/de-leveraging prospects, is designed to dynamically assess the health of the industry, predict surprises and identify potential requirements for third party support.

Insights on the global airline industry

<ul>
<li>Copa’s 2023 EBITDAR of $1,117m was achieved while growing unit revenues, while capacity expanded 13% with a 17% unit fuel cost tailwind. Not an easy feat.</li>
<li>In 2024, we expect only 5% EBITDAR growth on 10% capacity growth as unit revenues decline (following the emergence of this theme in 2H23) and EBITDAR-level unit costs grow.</li>
<li>We model Copa's EBITDAR/ASM premium to 2019 down to a still-impressive 35% in 2024 but new route selection and efficiency will need to be strong to sustain these economics.</li>
</ul>


Copa’s 2023 EBITDAR of $1,117m was achieved while growing unit revenues, while capacity expanded 13% with a 17% unit fuel cost tailwind. Not an easy feat.
In 2024, we expect only 5% EBITDAR growth on 10% capacity growth as unit revenues decline (following the emergence of this theme in 2H23) and EBITDAR-level unit costs grow.
We model Copa's EBITDAR/ASM premium to 2019 down to a still-impressive 35% in 2024 but new route selection and efficiency will need to be strong to sustain these economics.


Copa Holdings - A Slow-Growth Year in 2024 – Impressive Gain on Pre-Pandemic Economics Sustainable?

Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

Thematic (Sector/Industry)

<ul>
<li>Alaska Air Flight 1282 had an in-flight blowout of its mid-aft door and interior sidewall; the aircraft returned and landed safely, and there were no injuries or fatalities  </li>
<li>The U.S. Federal Aviation Administration (FAA) has ordered a temporary grounding of the affected aircraft model, and we think other countries will follow suit soon   </li>
<li>These stocks will likely be under shorts attack on Monday: Boeing (BA US), Alaska Air (ALK US), Ryanair (RYA ID) and United Airlines (UAL US)</li>
</ul>


Alaska Air Flight 1282 had an in-flight blowout of its mid-aft door and interior sidewall; the aircraft returned and landed safely, and there were no injuries or fatalities  
The U.S. Federal Aviation Administration (FAA) has ordered a temporary grounding of the affected aircraft model, and we think other countries will follow suit soon   
These stocks will likely be under shorts attack on Monday: Boeing (BA US), Alaska Air (ALK US), Ryanair (RYA ID) and United Airlines (UAL US)


Boeing 737 MAX 9 and MAX-8200 Grounded: Implications And Opportunities

United States

Copa Holdings SA provides international airline passenger and cargo service. The Company provides scheduled flights to countries in North, Central and South America and the Caribbean. The Company also has codeshare arrangements with Continental Airlines.

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Copa Holdings Sa Class A (CPA US)

Copa Holdings

Copa Holdings' second quarter earnings call highlighted strong performance amidst challenges, bolstering its position as a leader in Latin...

Baptista Research

Copa Holdings Sa (CPA) - Thursday, Nov 16, 2023

The airline's competitive advantage lies in its strategic location in Panama City and its hub-and-spoke model, facilitating efficient connections...

Value Investors Club

Copa Holdings - A Slow-Growth Year in 2024 – Impressive Gain on Pre-Pandemic Economics Sustainable?

Illustration of how difficult it will be for Copa to protect gross profit and EBITDAR per ASM at elevated levels relative to pre-pandemic.

Neil Glynn

Boeing 737 MAX 9 and MAX-8200 Grounded: Implications And Opportunities

Flight 1282 experienced a mid-air blowout but landed safely. The FAA has grounded the Boeing 737 MAX 9, potentially impacting stocks of Boeing,...

Mohshin Aziz

Price Gauge

52-week Range

Market Cap (USDm)

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Copa Holdings

Copa Holdings' second quarter earnings call highlighted strong performance amidst challenges, bolstering its position as a leader in Latin...

Baptista Research

Copa Holdings Sa (CPA) - Thursday, Nov 16, 2023

The airline's competitive advantage lies in its strategic location in Panama City and its hub-and-spoke model, facilitating efficient connections...

Value Investors Club

Copa Holdings - A Slow-Growth Year in 2024 – Impressive Gain on Pre-Pandemic Economics Sustainable?

Illustration of how difficult it will be for Copa to protect gross profit and EBITDAR per ASM at elevated levels relative to pre-pandemic.

Neil Glynn

Boeing 737 MAX 9 and MAX-8200 Grounded: Implications And Opportunities

​Flight 1282 experienced a mid-air blowout but landed safely. The FAA has grounded the Boeing 737 MAX 9, potentially impacting stocks of Boeing,...

Mohshin Aziz

Flight 1282 experienced a mid-air blowout but landed safely. The FAA has grounded the Boeing 737 MAX 9, potentially impacting stocks of Boeing,...