J.P. Morgan Overweight On US Airways

J.P. Morgan Chase & Co. has a research report on US Airways Group, Inc. LCC, and it has an Overweight rating and a $18 price target on shares. The report comes as the company updated guidance. In a note to clients, J.P. Morgan writes, "LCC 2Q guidance represents the conclusion of the formal pre-release season, with a suggested outcome not dissimilar from its Legacy peers. Specifically, softer revenue and higher costs imply a $0.60 outcome versus our $1.01 estimate and $0.91 consensus." J.P. Morgan goes on to say, "LCC's guidance follows similar disclosures from AMR, DAL & UAL, each of which painted a softer 2Q picture than originally expected. As for the demand picture, a clear trajectory is not yet evident. May demand was firmer than one would have expected, June softer, and certain carriers are suggesting a pickup in July trends. Recall the supply picture should incrementally improve post-Labor Day as capacity cuts announced earlier this year finally manifest and help to mitigate any revenue softness that may potentially emerge. Considering LCC's ~6% share price decline over the course of earnings pre-release season, we would be surprised if shares experienced any significant additional pressure as 2Q consensus expectations are revised downward." At last check, shares of LCC were off 2 cents to $8.43, a loss of 0.24%.