Dahlman Rose downgraded SkyWest (NASDAQ: SKYW) from Hold to Sell with a price target of $5.00.

Analyst, Helane Becker, said, "SkyWest is the largest operator of 50-seat regional jets, with 268 aircraft at the end of 1Q12. Delta Air Lines (NYSE: DAL) represents 35% of the company's fleet at the end of 1Q12. Delta announced it will retire a significant portion of its 50-seat operation. We expect Delta will look to remove a large portion of SkyWest 50-seat operation is favor of larger 70-seat aircraft. Delta's aircraft retirement and replacement is likely to put downward pressure on SkyWest earnings."

Becker also notes SKYW, as a regional airline will have 'margin squeeze' issues similar to Republic (Nasdaq: RJET)

For an analyst ratings summary and ratings history on SkyWest click here. For more ratings news on SkyWest click here.

Shares of SkyWest closed at $7.00 yesterday, with a 52 week range of $6.25-$14.32.

 

Duh: Slang, an ironic response to a question or statement, implying that the speaker is stupid or that the reply is obvious. Oh the irony!!

 

Helane Becker is the same analyst that advised buying AMR stock just before they filed bankruptcy. Often times, in my experience, you can do the opposite of what an analyst says, i.e. reverse psychology. The analysts' firms may be short the stock or trying to buy a lot more, so they want the price to go down, say before the earnings announcement (a week from today) in case it pops much higher on an earnings beat and solid outlook.

 

Not only that, but they can also be behind the stock. Look at the past 6 months. The sell rating should have come in April.