UPDATE: Evercore Group Upgrades Republic Airways Holdings Following Sell-Off

In a report published Friday, Evercore Group analyst Duane Pfennigwerth upgraded the rating on Republic Airways Holdings (NASDAQ: RJET) from Equal-Weight to Overweight, and raised the price target from $13.00 to $14.00.

In the report, Evercore Group noted, “Our rating on RJET shares is raised to Overweight from Equal-Weight given today's 10% sell-off, Republic's cleaned-up business model, and current 25% PE multiple discount valuation to peer SKYW. Republic Airways is getting back to its singular focus on regional outsourcing after four years of also owning and restructuring Denver-based low-cost carrier Frontier. While 2014 consensus likely adjusts down as Frontier profits are now excluded as expected (we move to $1.32 from $1.70 previously), we think RJET's earnings multiple (8x) will converge with SKYW (11x) given Republic's refound clarity of purpose. Price target moves up $1 to $14 (33% upside).”

Republic Airways Holdings closed on Thursday at $10.56.