Rising Jet Fuel Prices Behind Versant Downgrade of WestJet

A recent run up in the price of jet fuel has led to a downgrade on WestJet Airlines Ltd. (WJAVF.PK) by Versant Partners analyst Cameron Doerksen. The current price of jet fuel sits at about C$0.86 a liter, which is not only substantially higher than it was at the end of last year [C$0.76 liter], but also well above his previous forecast for the year at C$0.75 a liter for 2008, Mr. Doerksen said. “Given the near-term challenge of higher fuel prices, we believe that some caution is warranted on the stock,” he added.

He downgraded the stock from a “buy” to a “hold” after raising his fuel price estimates for 2008 to C$0.81 a liter. The increase also lowered his earnings-per-share estimate for 2008 to C$1.45 from C$1.60. For 2009, he said, he is now expecting earnings of C$1.66 a share, down from C$1.78 a share. His new price target is C$21.75, down from C$24, accordingly.

Comments

[theplaintiff]

i wonder if this company could use an nvestment of 100 billion from a llc out of delware as well.