After the national pilots union announced last night that it would not recommend a vote on the contract offer presented by Republic Airways, Imperial Capital analyst Scott Buck noted that the company previously indicated that the inability to reach a deal with pilots would likely result in a restructuring through Chapter 11 bankruptcy. Buck thinks, however, that the national union's rejection is largely due to the local union having already provided a counterproposal and noted that the local union said it is willing to keep negotiating. The analyst, who believes an agreement is still possible, keeps a $10 price target and Outperform rating on the stock, as he expects the pilots will ultimately ratify the current contract proposal and that shares will return to where they traded prior to the recent contract-related volatility.