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