Jamie Baker is out of his mind. Wonder if anyone remembers his $8 price target for AMR?
WASHINGTON (MarketWatch) -- Investment firm J.P. Morgan raised its financial outlook for airlines on Thursday following the decision by American Airlines parent AMR Corp.
AMR +21.84% to reorganize under bankruptcy. "We are modeling for a 10% AMR capacity cut, which is expected to divert 6%, or about $1.4 billion of revenue," the firm said in a note to clients. "This equates to 1% to 3% revenue improvement per competitor in 2012." J.P. Morgan raised the 2012 profit outlook for US Airways
LCC +7.63% to $2.26 a share from $1.72, and a new price target of $12.50; United Continental
UAL +8.01% 2012 EPS was upped to $6.97 a share from $5.71, with a price target of $45; and JetBlue Airways
JBLU +8.01% EPS was raised to 60 cents a share from 39 cents, with a price target of $9. The price target for Delta Air Lines
DAL +5.60% was raised to $17.50.
Don't get me wrong, I'd love for any of that to be true. It is just that Jamie forgets the reasons AMR went bankrupt and that other market trends encapsulate the real world that airlines' customers live in. If our management said this Eliott Spitzer would move his base of operations to the Pink Pony, run for Solicitor General and throw Ed Bastian in jail.
Wall St. has not common sense or accountability ... this proves it.