Benzinga | Nov 16, 2021 03:51PM EST

Barrington Downgrades Wheels Up - Read Why

* Barrington analyst Gary Prestopino downgraded Wheels Up Experience Inc (NYSE:UP) to Market Perform from Outperform with a price target of $16, implying an upside of 189%.

* Prestopino noted the company reported better than expected revenue for the quarter with solid membership growth metrics. However, higher demand coupled with labor, supply, and cost pressures compounded in Q3 versus the first half of the year, leading to significant margin declines in August and September.

* Prestopino believes, based on the "anticipated diminishment" of Wheels Up's adjusted contribution margin and higher anticipated adjusted EBITDA losses over the next several quarters, the stock will be "stuck in a trading range until an improvement in financial metrics begins to manifest itself."

* Recently, Raymond James lowered the price target to $9 (an upside of 63%) from $10 and maintained an Outperform on the shares.

* Also, Credit Suisse lowered the price target to $11 (an upside of 99%) from $14 and Maintained an Outperform rating.

* Also read Wheels Up Stock Slides On Q3 Loss, Margin Pressure.

* Price Action: UP shares are trading lower by 4.67% at $5.51 on the last check Tuesday.