Raymond James Downgrades Alaska Air (ALK) to Market Perform
Raymond James analyst Savanthi Syth downgraded Alaska Air (NYSE: ALK) from Strong Buy to Market Perform.
The analyst comments "We are downgrading ALK from Strong Buy to Market Perform following the announcement of the planned acquisition of Hawaiian. Admittedly, with the acquisition unlikely to close for 12-18 months, the earnings recovery outlook that supported our prior view is intact, with the only likely change a delay in resuming a dividend. Moreover, we believe this acquisition makes sense longer term and Alaska has the balance sheet and earnings strength to see it through. However, given the current macro uncertainty, the complexity of executing the merger should weigh on sentiment and likely limits the near- to medium-term upside case."
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Shares of Alaska Air closed at $39.73 yesterday.