The Globe and Mail reports in its Thursday, May 9, edition that CIBC World Markets analyst Kevin Chiang has downgraded WestJet Airlines to "sector performer" from "sector outperformer," citing valuation concerns. The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Chiang reduced his price target on the shares by $1 to $27. RBC Dominion Securities analyst Walter Spracklin reiterated his "sector perform" rating. The analyst, however, hiked his target price by $4 to $27. WestJet warned Tuesday it was likely to earn less revenue from every seat in the coming quarter. Plans to increase capacity in the Canadian airline industry have picked up considerably in recent months, and analysts fear this will lead to downward pressure on ticket prices. This appeared to be validated by WestJet's comments Tuesday that second quarter revenue per available seat mile was likely to decline moderately. "The Q1/2013 results reaffirmed several of the concerns we had with regards to increased capacity coming on line and the potential that lower yields would be required to stimulate traffic," commented Mr. Spracklin. He recommends investors "take profits in the sector and await a better re-entry point."