Ongoing political tension and the threat of war with North Korea is
reason enough for analysts at Buckingham Research Group to downgrade Hawaiian Holdings, Inc. (NASDAQ: HA). The firm's Daniel McKenzie downgrades Hawaiian Holdings' stock rating from
Buy to Neutral with a price target slashed from $55 to $39.
Simply put, discretionary travel among tourists in Japan and South Korea visiting Hawaii has "plummeted" amid tensions with
North Korea, McKenzie commented in his downgrade note. Specifically, bookings over the past two months between Tokyo and Honolulu
International Airport are down 55 percent and bookings between Osaka and Honolulu are down 67 percent. As a whole, bookings from
Japan and South Korea comprise around 16 percent of the company's total revenue. By comparison, bookings from the U.S., Australia,
New Zealand and elsewhere are all flat.
While the airline
did announce a "brilliant" new code-sharing with Japan Airlines starting in March, any benefits from this relationship are only
longer-term in nature.
Bottom line, the near-term concerns for the airliner take precedent and
the notable dip in demand from Asia is unlikely to change any time soon, the analyst suggested. In fact, these trends are likely to
continue into 2018 and could add downside pressure to earnings moving forward.
Related Links:
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'Blissfully Ignorant' Wall Street May See Downturn Due To Real-World Realities
Latest Ratings for HA
Date |
Firm |
Action |
From |
To |
Sep 2017 |
Buckingham |
Downgrades |
Buy |
Neutral |
Sep 2017 |
Macquarie |
Initiates Coverage On |
|
Outperform |
Aug 2017 |
Morgan Stanley |
Maintains |
|
Underweight |
View More Analyst Ratings for
HA
View the Latest Analyst Ratings
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