Market Overview

Virgin America Quiet Period Ends, Analysts Bullish On Stock

Share:
Virgin America Quiet Period Ends, Analysts Bullish On Stock
Related VA
10 Stocks With Highest Close In Three Weeks
Airlines Have More Room To Run

The quiet period has expired on shares of Virgin America Inc (NASDAQ: VA) and coverage was initiated by several firms Wednesday.

Deutsche Bank, Barclays, Cowen and Bank of America rated the company a Buy (or the equivalent) while Raymond James gave it a Market Perform rating.

The stock has risen from its November 13 IPO price of $23.00 to $35.81 as of Tuesday’s close.

Deutsche Bank analyst Michael Linenberg commented that “Virgin America is able to offer a lower price for its three-class product than its primary competitors (namely the traditional network carriers) due to its lower cost structure. This is largely accomplished by flying a single aircraft type (Airbus A320 family), high asset utilization, and outsourcing all functions that are non-passenger facing (e.g. baggage delivery, heavy maintenance, reservations, etc.).”

Linenberg concluded that the company represented “an attractive means to invest in a low cost carrier that is pursuing a unique strategy: targeting price-sensitive business travelers and high-end leisure customers who ascribe value to a hip, high-tech, high-touch travel experience.”

With the quiet period ending the stock traded at $37.10 in Wednesday’s premarket, up 3.60 percent.

Image credit: Hawaiian717, Wikimedia

Latest Ratings for VA

DateFirmActionFromTo
Oct 2016Deutsche BankMaintainsHold
Oct 2016JP MorganUpgradesUnderweightNeutral
Sep 2016Imperial CapitalInitiates Coverage onIn-Line

View More Analyst Ratings for VA
View the Latest Analyst Ratings

Posted-In: Bank of America Barclays Cowen Deutsche BankAnalyst Color Initiation Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (VA)

View Comments and Join the Discussion!