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NEW YORK (TheStreet) -- Republic Airways (RJET) stock is climbing by 17.58% to $6.22 in mid-morning trading on Tuesday, continuing Monday's rally after the company reached a tentative agreement with its pilots union about contract negotiations that began in 2007.

Republic Airways stock nearly doubled on Monday, after tanking 79% in three months to close at an all-time low of $2.12 on August 26, MarketWatch reports. 

Shares of the company plummeted earlier this month after Republic Airways and pilots union Teamsters Local 357 failed to reach an agreement on what the airline had deemed its final round of pilot-contract negotiations. Republic Airways said that if the pilots rejected that offer, it would likely file for bankruptcy.

However, on Monday the companies announced they had reached a tentative agreement, with the vote to ratify the agreement expected to end in late October.  

Cowen & Company analyst Helane Becker has since upgraded the company to "market perform" from "underperform" and upped her price target to $6 from $1 on the stock, according to MarketWatch.

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Republic Airways, based in Indianapolis, Ind., provides fixed-fee regional airline services under United Express, Delta Connection and US Airways Express/American Eagle.

Separately, TheStreet Ratings team rates REPUBLIC AIRWAYS HLDGS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate REPUBLIC AIRWAYS HLDGS INC (RJET) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 1.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 39.19% is the gross profit margin for REPUBLIC AIRWAYS HLDGS INC which we consider to be strong. Regardless of RJET's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RJET's net profit margin of 1.27% is significantly lower than the industry average.
  • The debt-to-equity ratio is very high at 3.54 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.49, which clearly demonstrates the inability to cover short-term cash needs.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Airlines industry and the overall market, REPUBLIC AIRWAYS HLDGS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • You can view the full analysis from the report here: RJET