Goldman Initating Coverage On Republic Airways Holdings (RJET)

Goldman Sachs is initiating coverage on Republic Airways Holdings Inc. RJET with a Buy rating and a $9.50 price target on shares. In the research note sent to clients, Goldman writes, "We are initiating coverage on Republic Airways (RJET) with a Buy rating and a 12-month price target of $9.50, representing 30+% upside from current levels. We think Republic's hybrid operating model provides a healthy balance of offensive and defensive characteristics, with the company uniquely positioned to benefit from strengthening demand for domestic air travel while remaining relatively insulated from rising fuel prices in its fixed-fee segment. Moreover, ongoing consolidation in the industry should provide Republic with more opportunities for expansion, particularly amid a strengthening US GDP growth environment." Shares of RJET are up 16 cents in pre-market trading to $7.30, a gain of over 2%.