Cowen and Company Upgrades Republic Airways Holdings Inc.(NASDAQ:RJET) to Market Perform


Republic Airways Holdings Inc.(NASDAQ:RJET) was upgraded from an underperform” rating to a “market perform” rating by analysts at Cowen and Company In a research report issued September 28. The stock saw an explosive move up on the news running off its $2.75 base to highs well over $5 per share on spectacular trading volume.

The report which was prepared by Helane Becker, Conor Cunningham and Stephen Stone, CFA noted that We are upgrading Republic Airways to Market Perform from Underperform. We are establishing a price target of $6, up from $1 previously. We stated several times in the past this was a binary event for the company. Republic was either going to file for chapter 11 or reach a pilot agreement. With the company reaching an agreement with its pilots, bankruptcy is clearly off the table. It is still unclear what the company will look like post a new pilot agreement as they probably still need concessions from its major partners. This is clearly positive for Republic longer term.

Republic Airways Holdings Inc.(NASDAQ:RJET) based in Indianapolis, Indiana, is an airline holding company that owns Republic Airlines and Shuttle America, collectively called “the airlines.” The airlines operate a combined fleet of about 240 aircraft and offer scheduled passenger service with approximately 1,250 flights daily to about 100 cities in the U.S., Canada and the Caribbean through fixed-fee flights operated under our major airline partner brands of American Eagle, Delta Connection, United Express and US Airways Express. The airlines currently employ about 6,500 aviation professionals.

On September 28 RJET announced they have reached a consensual tentative agreement on the terms of a new three-year contract for the 2,100 Republic pilots represented by the International Brotherhood of Teamsters.

The parties are preparing the document for publication, at which point Local 357 will distribute copies of the tentative agreement to its members. The union plans to hold a series of road shows and other forums to afford its members the opportunity to review the tentative agreement and to ask questions. Ratification voting is scheduled to conclude in late October. Further details on this process will be provided to our Pilots by the union in the coming days.

Republic vice president of human resources, Matt Koscal said “This is a positive outcome. This consensual agreement respects the role our pilots play in our airline’s success and it puts them at the forefront of our industry. We are pleased that we could reach a consensual agreement with the leadership of Local 357 that allows us to make a significant investment in our Pilots and our future.”

Teamsters Local 357 president, captain Jim Clark said “This milestone is long overdue. Our members are extraordinary aviators and safety professionals who come to work every day ready to do the job asked of them. They deserve pay, job security, benefits and work rules that match their leadership position in our industry. The Executive Board of Local 357 recommends this tentative agreement to our members for ratification. We were able to reach this positive outcome because of the support of our members who stayed united even in the face of constant challenges.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Helane Becker has a total average return of 31.2% and a 77% success rate. Becker is ranked #6 out of 3,787 analysts. Connor Cunningham has a total average return of 23.5% and a 80% success rate. Cunningham is ranked #1,229 out of 3,787 analysts.

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