UPDATE: Bank of America Reiterates Underperform Rating, Raises PT on Republic Airways Holdings on New UAL Contract

In a report published Thursday, Bank of America analyst Glenn D. Engel reiterated an Underperform rating on

, and raised the price target from $10.00 to $11.00. In the report, Bank of America noted, “RJET announced a deal with UAL to add 50 new E175 aircraft beginning July 2015, extend 38 E170s through 2019-2012, and, in exchange, wind down Q400 flying (31 aircraft) by August 2016. The E175 order improves margins by replacing less profitable Q400s and also provides rare growth aircraft for RJET. We raise 2015E by $0.10 to $1.10, and our P.O. to $11 from $10, but maintain Underperform rating.” Republic Airways Holdings closed on Wednesday at $11.31.