Lower rates ahead is a tailwindWhile management is doing a stellar job of bringing the debt down, there's no denying that it is still above the comfort level for many fund and institutional buyers. Rates going higher was a threat for most of last year and that certainly pressured the stock after topping out a year ago.
With inflation now falling under 3%, the rate tightening cycle is over and the higher for longer mantra is ending. Whether we get a rate cut in April (although highly unlikely) or June (possible) or in the back half of this year (very likely), the end result is rates are coming down soon.
This bodes well for those companies holding more debt than they should as it now makes it easier and quicker to pay it down. For this reason, the market is pricing the stock higher which, by the way, is still 20% below it's annual high. With recession odds waning, rates on the cusp of decline, and a strong US economy, there is no reason why this couldn't retest those highs again soon. GLTA