SKYH Stock Forecast & Price Target

Sky Harbour Group Corp is poised for significant revenue growth as it ramps up new developments, with expectations for EBITDA to increase by 471% year-over-year to $20 million, driven by operational efficiencies and improved margins. The company's strategic focus on building and leasing high-demand hangars in markets with imbalances further positions it favorably, especially given the outsized growth of the private aviation sector over the past three decades. Additionally, the success of the OPF development in Miami showcases the company's ability to stabilize projects quickly, enhancing its established market presence and recognition among private aviation clients.

Sky Harbour Group Corp reported a third-quarter adjusted EBITDA of ($2.3 million), which was $0.7 million below the company's estimate and significantly lower than market expectations, indicating challenges in achieving profitability. The company faces substantial inflationary pressures and rising construction costs that could adversely impact development budgets and project viability, particularly affecting its capital-intensive operations. Additionally, despite a significant increase in the US business aviation fleet size, the lag in hangar construction relative to demand raises concerns about the company's ability to generate consistent financial returns going forward.