SkyWest (SKYW) Rated as ‘Outperform’ at Raymond James amid Fleet Optimization Plans

SkyWest, Inc. (NASDAQ:SKYW) is one of the best airline stocks to buy according to hedge funds. On June 18, Raymond James reiterated an ‘Outperform’ rating on the stock and a $125 price target. The bullish stance comes as the regional aircraft leasing company moves to replace 11 CRJ-900s and 5 CRJ-700s currently operated for Delta with 16 new E-175 aircraft.

SkyWest (SKYW) Rated as ‘Outperform’ at Raymond James amid Fleet Optimization Plans

The fleet replacement is scheduled to begin in 2027 and is expected to be completed by early 2028. The replacement comes as the CRJ aircraft have been operating under short-term extensions. The change is expected to provide the company with higher-quality long-term contracts.

In addition, SkyWest has expanded its E-175 purchase agreement with Embraer. The airline has committed to 60 deliveries, up from 10 and 50 optional. According to Raymond James, the development underscores the airline’s efforts to diversify its fleet mix and enhance future earnings streams.

SkyWest, Inc. (NASDAQ:SKYW) operates as a regional airline and aircraft leasing company. It partners with major airlines, including United, Delta, American, and Alaska, to provide regional flight service connecting passengers to hundreds of destinations throughout North America. It also operates charter services through SkyWest Charter (SWC).

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