Raymond James Cuts Atlantic Coast Air Rating
Raymond James downgraded Atlantic Coast Airlines (ACAI ) to market perform.
Analyst James Parker says he's less uncertain about Atlantic Coast's growth outlook, since it has not signed a memorandum of understanding with United and a large amount of United's regional jet growth is allocated to SykWest and Mesa Air -- rivals to Atlantic Coast.
Parket also cut the $1.20 2004 earnings per share estimate to $1.00, due to a lack of confidence that Atlantic Coast will be able to get additional regional jets beyond the six 50-seat regional jets currently scheduled for delivery in 2004. Although he thinks Atlantic Coast will reach a new contract with United, he's now less certain about the potential for incremental regional jet growth beyond 2004 and 2005.