Dahlman Rose Reiterates Sell, $0.75 on Pinnacle Airlines

Dahlman Rose remains Sell-rated on Pinnacle Airlines

with a $0.75 price target despite an increase of over 100% in the stock's price, which appears to reflect activism from investors rather than any fundamental changes. Dahlman Rose notes, "A group of four active investors owning ~9.5% of Pinnacle are demanding board of director changes. One of the investors, Wayne King filed a 13D indicating he increased his stake in the company from 2.78% to 3.15%. The four investors seek the immediate appointment of new shareholder-designated directors, with full voting rights and prompt formation of an equity committee. The shares of Pinnacle have reacted very favorably to this news, as many investors are trying to exit the stock before the company becomes cash negative or files for Chapter 11." PNCL closed at $1.41 a share on Tuesday.