After shares of Hawaiian Holdings, Inc. HA 1.96% dropped an incredible 27 percent on Friday on a disappointing earnings report, analysts at CRT Capital believe the stock offers exceptional value at current levels.

In fact, in a report released Monday morning, analysts expressed how baffled they are at the drop.

Selloff Overdone

Analysts believe the correction in Hawaiian Holdings has created an opportunity for value investors.

After the 27 percent drop, the stock trades at a 2015 TEV/EBITDAR (total enterprise value to earnings before interest, taxes, depreciation, amortization and restructuring or rent ratio) of only 3.9x, well below the industry average of 5.5x. The lack of material news impacting earnings forecasts for the company left analysts scratching their heads at the huge selloff.

2015 Outlook

Analysts are projecting record profits for Hawaiian Holdings in 2015, up 64 percent year-over-year.

In addition, pretax margins are expected to rise from 7.2 percent in 2014 to 11.6 percent in 2015. Hawaiian is adding three new A330 planes in 2015 and retiring three 767, maintaining a 50-plane fleet overall.

EPS Adjustment

After discussions with Hawaiian Holdings management, CRT Capital lowered its 2015 earnings per share (EPS) estimate, but only slightly.

“We tweaked our ’15 EPS estimate modestly , to $2.54 from $2.56, as lower jet fuel prices ($2.10 per gallon versus $2.40 prior) and better-than-expected unit costs ex-fuel (up 2 percent versus 3 percent prior) do not appear to be offsetting greater than anticipated unit revenue weakness (down 3.7 percent versus 0 percent),” they wrote.

Price Target

Hawaiian Holdings is down nearly 4 percent in trading on Monday, and CRT Capital analysts call the selloff “irrational.”

They recommend “aggressively” buying shares of the stock and maintain a $35 price target.

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