NY-listed LCCs strengthen; Virgin Blue upgraded
LCCs ended mixed on Wednesday 17-Nov-2010 after a choppy day's trade across most major markets. NY-listed LCCs edged higher while those in the Asia Pacific region ended lower. Lingering concerns about news out of Ireland and China is keeping investors cautious.
- LCCs (Low-Cost Carriers) had a mixed performance in the market, with NY-listed LCCs gaining while those in the Asia Pacific region declined.
- Lingering concerns about news from Ireland and China are impacting investor confidence in the aviation industry.
- Allegiant, Ryanair, GOL, and JetBlue were among the LCCs that finished higher for the day, tracking the overall positive performance of the ARCA Airline Index.
- Virgin Blue Holdings Ltd was upgraded to "buy" by RBS, but its stock price fell along with the wider Australian market.
- Cebu Air received positive ratings from Citigroup and JPMorgan, but its stock price declined.
- SpiceJet, an Indian LCC, experienced the sharpest decline in share price, attributed to recent management changes following a significant acquisition of the airline's stock.
Allegiant (+3.1%), Ryanair (+2.2%), GOL (2.1%) and JetBlue (+1.1%) all finished higher for the day, broadly tracking the ARCA Airline Index, which gained 0.37%.
Virgin Blue and Cebu Air fall on upgrade
Brisbane-based Virgin Blue Holdings Ltd was upgraded to "buy" from "hold" by RBS. Virgin fell with the wider Australian market, shedding 1.1% to AUD0.435 cents.
Cebu Air was rated "buy" with a 12-month share price estimate of PHP160 by Citigroup. JPMorgan has assigned the stock an "overweight" rating with a price estimate of PHP145. Cebu fell 3.2% yesterday to PHP120.10.
SpiceJet falls 4.2%
India's SpiceJet was the day's sharpest loser, falling 4.2%. The carrier has recently announced a major reshuffle of senior management following Kalanithi Maran's acquisition of 38% of the airline's stock. Mr Maran is the LCC's chairman.
Selected LCCs daily share price movements (% change): 17-Nov-2010