As uncertainty surrounding both a United Airlines extension and American Airlines performance are largely removed, shares of Mesa Air Group (MESA) should begin to close the current valuation gap with regional peer SkyWest (SKYW) and move towards $13, B. Riley FBR analyst Scott Buck tells investors in a research note. He believes that longer term, Mesa remains well positioned to sign additional flying given its advantageous cost structure to peers. The analyst thinks investors should take advantage of the current "discounted valuation" and maintains a Buy rating on Mesa Air with a $13 price target.

Reports Q1 revenue $804M, consensus $800.2M. Chip Childs, CEO, "Our ability to meet our partners' demand for additional production continues to increase as our captain availability has improved. We are also pleased with how our teams performed under challenging winter conditions during the first quarter."