Dahlman Rose Downgrading Pinnacle Airlines Corp. (PNCL)

Dahlman Rose & Co. is downgrading shares of Pinnacle Airlines Corp. PNCL to Hold from Buy. It has a $8 price target on shares. In a note sent to clients, Dahlman writes, "We are downgrading the common shares of Pinnacle Airlines to Hold from Buy as the stock is above our $8 price target. Cost headwinds in 4Q10 pressured revenue; 1H11 demands on cash for aircraft purchases. We are forecasting 4Q10 EPS of $0.28 compared to $0.31 last year and compared to the $0.29 consensus estimate. Management expects 4Q10 net income to decline on a year over year basis due to higher than expected pilot training costs. Pinnacle's Colgan Airlines division also expects to have lower year over year revenue due to flight cancellations during the quarter. The flights were canceled due to higher than expected maintenance, damage to several Saab aircraft and stormy weather." Shares of PNCL are off 1 cent in pre-market trading to $8.63.