Courtesy of Benzinga.
Michael Linenberg of Deutsche Bank initiated coverage of Virgin America Inc (NASDAQ: VA) on Wednesday with a Buy rating and $44 price target as shares are an “attractive” way to gain exposure to the U.S. domestic market.
According to Linenberg, Virgin America offers investors a compelling story as it is a low-cost carrier pursuing a unique strategy of targeting price-sensitive business travelers and high-end leisure customers that want to travel with a “hip, high-tech, high-touch travel experience.”
Linenberg notes that Virgin America offers lower prices relative to its peers for its three class product by flying a single aircraft type, high-asset utilization while outsourcing all functions that are non-passenger facing such as baggage delivery. The analyst adds that given the company’s size it “doesn’t take much to move the needle” with respect to growth.
Latest Ratings for VA
Date | Firm | Action | From | To |
---|---|---|---|---|
Dec 2014 | Barclays | Initiates Coverage on | Overweight | |
Dec 2014 | Cowen & Company | Initiates Coverage on | Outperform | |
Dec 2014 | Deutsche Bank | Initiates Coverage on | Buy |
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Posted-In: air carriers Deutsche Bank Michael Linenberg Virgin AmericaAnalyst Color Price Target Initiation Analyst Ratings