SKYH Stock Forecast & Price Target

Sky Harbour Group Corp is positioned for significant growth within the private aviation sector, with expectations of revenue ramping dramatically over the next three years as new developments enter the market and contribute to cash flow. The company is poised to benefit from limited availability of newly constructed, well-amenitized hangars, which is expected to enhance demand and leasing spreads. Furthermore, projected EBITDA is anticipated to rise 471% year-over-year to $20.0 million, underscoring the firm's high operating leverage and improved margins as it continues to expand its footprint in the industry.

Sky Harbour Group Corp reported a third-quarter adjusted EBITDA of ($2.3 million), which was $0.7 million below expectations and highlights the ongoing financial challenges the company faces. The company is also grappling with inflationary pressures and rising construction costs, which threaten to undermine development budgets and impact overall project economics given the capital-intensive nature of hangar constructions. Furthermore, despite the growth in the U.S. business aviation fleet, the substantial lag in hangar construction relative to demand raises concerns about Sky Harbour's capacity to generate consistent returns for investors, contributing to a negative outlook on its stock.