Virgin America Quiet Period Ends, Analysts Bullish On Stock
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
|Dec 2016||JP Morgan||Downgrades||Neutral||Underweight|
|Oct 2016||Deutsche Bank||Maintains||Hold|
|Oct 2016||JP Morgan||Upgrades||Underweight||Neutral|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.