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Virgin America Quiet Period Ends, Analysts Bullish On Stock

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Virgin America Quiet Period Ends, Analysts Bullish On Stock
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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
Dec 2016JP MorganDowngradesNeutralUnderweight
Oct 2016Deutsche BankMaintainsHold
Oct 2016JP MorganUpgradesUnderweightNeutral

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

 

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