Cowen Downgrades Several Airline Stocks (AAL, ALK, JBLU, SAVE, UAL)

Financial services firm Cowen has updated its ratings for several airlines now that 2017 has begun.

Cowen, Airlines, AAL, ALK, JBLU, SAVE, UAL

Research analysts at Cowen have chosen to drop American Airlines Group Inc (NASDAQ:AAL) from an “Outperform” rating to a “Market Perform” rating. It is still maintaining its target price of $50 per share for AAL.

Alaska Air Group, Inc. (NYSE:ALK) is another airline company that Cowen has updated its stance on. It also dropped it from an “Outperform” rating to a “Market Perform” rating. However, the firm increased its target price for ALK stock to $95 per share from $92 per share.

JetBlue Airways Corporation (NASDAQ:JBLU) was also the target of a downgrade from Cowen. Yet again, the firm dropped this stock from an “Outperform” rating to a “Market Perform” rating. Its current target price for JBLU stock sits at $23 per share.

Spirit Airlines Incorporated (NASDAQ:SAVE) also saw its rating drop from “Outperform” to “Market Perform.’ Despite the downgrade, Cowen upped its target price for SAVE stock from $53 per share to $58 per share.

United Continental Holdings Inc (NYSE:UAL) also suffered a downgrade. The stock now has a “Market Perform” rating instead of its previous “Outperform” rating. UAL stock was also hit with a target price drop from $77 per share to $75 per share, reports Benzinga.

“We believe the airline industry can continue to re-rate higher, but given the sharp move in multiples in 4Q16, the stocks will likely take a breather first,” Cowen said in a statement obtained by Barron’s.

AAL and ALK stock were up 1%, JBLU and UAL stock were up slightly, and SAVE stock was down slightly as of Wednesday morning.

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