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Home Markets Markets British Airways earns upgrade despite strike saga
British Airways earns upgrade despite strike saga PDF Print E-mail
Written by Will Peters   
Wednesday, 17 March 2010 15:54
British Airway strike action not enough to put these brokers off.



British Airways (LON:BAY) may be facing a couple of months of work force troubles but this is not enough to hold off broker upgrades.

Today the research team at Raymond James have said that despite the impending troubles, and indeed the threat to the airlines reputation, stocks in the company still offer value.

Raymond James have set a new target of 275 on British Airways, they therefore see an upside potential of 11.79% on the stock from yesterday's close of 246.

Despite the positive outlook that Raymond James has expressed, investors on the FTSE 100 are not feeling so bullish on the stock today.

BA is lower by 2.20% at 240.60.

The negative sentiment is of course flowing from the realisation that the likelihood of finding a solution to the planned British Airways strike grows less likely.

With no firmer moves being made by Government to end the strike, and no prospects of either the union or management backing down it is odds on that the strike will go ahead.

And this simply means the airline is likely to lose yet more money. While we may be able to count the money lost in takings, cancellations and operational costs we are not able to quantify the damage done to the airlines reputation.

This of course will impact on future profitability. Despite this, Raymond James believe that BA management has gone far enough to minimise the impact of the strike, hence today's upgrade.
Last Updated ( Wednesday, 17 March 2010 15:56 )