UPDATE: Bank of America Upgrades Republic Airways to Neutral on Reduced Risk

Bank of America raised its rating on Republic Airways RJET from Underperform to Neutral with a reiterated $5.50 price objective. Bank of America said, "Frontier continues to make impressive progress in its turnaround, and RJET has negotiated 75% of its planned $45 million of savings at its 50-seat jet operation. As a result of the reduced liquidity and profit risk, we are upgrading our rating for RJET to Neutral from Underperform and maintain our $5.50 price objective. … Though Frontier's revenues fell 1%-2% below management guidance, lower than expected costs at Frontier produced the EPS upside surprise. Still, we see labor and maintenance pressures building as a result of new contracts and a maturing workforce and fleet." Republic Airways closed at $4.58 on Monday.