RESEARCH ALERT-JP Morgan cuts Atlas Air to 'market underperform'
June 17, 2002 12:00:00 PM ET
NEW YORK, June 17 (Reuters) - J.P. Morgan said it cut its investment rating on Atlas Air Worldwide Holdings Inc. (CGO) to "market underperform'' from "market perform'' based on poor earnings and contract visibility and uncertainty over discussions with its pilots.
Analysts Gregory Burns and Brannon Cook said they expect excess airfreight capacity to prevent Atlas Air from fully participating in a recovery of freight volumes.
They increased their 2002 loss forecast to $13.5 million from $1.8 million and now expect a second-quarter loss of 23 cents a share. They said they reduced their earnings estimates to a per-share loss of 35 cents in 2002, down from a previous estimate of a 5-cent loss, and a profit of 35 cents in 2003, down from a previous outlook for 50 cents.
They estimated Atlas Air's cash burn at $14.1 million by year-end. In early trade, the stock was off $2.05 or 33.88 percent to $4.00 per share. REUTERS
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