Alaska Air downgraded to Market Perform from Strong Buy at Raymond James

Raymond James double downgraded Alaska Air (ALK) to Market Perform from Strong Buy without a price target Perform following the announcement of the planned acquisition of Hawaiian (HA). With the acquisition unlikely to close for 12-18 months, Alaska’s earnings recovery outlook is intact, with the only likely change a delay in resuming a dividend, the analyst tells investors in a research note. The firm believes the acquisition makes sense longer term and that Alaska has the balance sheet and earnings strength to see it through. However, given the current macro uncertainty, the complexity of executing the merger should weigh on sentiment and likely limits the near- to medium-term upside case, says Raymond James.