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UAL

United Continental

$59.90

0.12 (0.20%)

, DAL

Delta Air Lines

$53.27

1 (1.91%)

09:51
10/21/17
10/21
09:51
10/21/17
09:51

Market pounds United, sees American/Delta as possibly safe bets, Barron's says

United Continental's (UAL) earnings were bad news for the company, with shares dropping after the carrier reported better than expected earnings but offered guidance that suggested that its fourth quarter earnings would miss, Ben Levisohn writes in this week's edition of Barron's. While Delta Air Lines (DAL) and American Airlines (AAL) followed their peer lower, their shares did not go much lower, as the Market seems to see the two airlines as possibly safe bets, he adds. Reference Link

UAL

United Continental

$59.90

0.12 (0.20%)

DAL

Delta Air Lines

$53.27

1 (1.91%)

AAL

American Airlines

$51.93

0.42 (0.82%)

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UAL United Continental
$59.90

0.12 (0.20%)

10/20/17
WOLF
10/20/17
DOWNGRADE
WOLF
Peer Perform
United Continental downgraded to Peer Perform from Outperform at Wolfe Research
Wolfe Research downgraded United Continental to Peer Perform from Outperform following the disappointing Q3 report and Q4 guidance. The analyst expects medium term RASM underperformance and minimal associated CASM benefit, combined with a lack of confidence in cost improvements.
10/20/17
MSCO
10/20/17
NO CHANGE
Target $68
MSCO
Equal Weight
Limited visibility keeps Morgan Stanley hesitant on United Continental
Morgan Stanley analyst Rajeev Lalwani noted that United Continental's Q3 earnings slightly beat estimates, but the company provided limited details into its revenue and cost initiatives and notably deferred a more thorough update on its initiatives. While Lalwani thinks the company's "more healthy" Q4 RASM forecast of down 1-3% could prove conservative, he said the limited visibility into next year's costs overshadows the near-term strength and keeps him hesitant on the shares. He keeps an Equal Weight rating on United shares and trimmed his price target to $68 from $73.
10/20/17
STFL
10/20/17
NO CHANGE
Target $100
STFL
Buy
United Continental lack of cost leverage disappointing, says Stifel
Stifel analyst Joseph DeNardi said United Continental's (UAL) lack of cost leverage this year is "disappointing" and that management commentary suggests that cost pressures next year could put the less than 1% growth target at risk. He also fundamentally disagrees with management's rationale for why the company is under earning on its business of selling miles to JPMorgan Chase (JPM) when compared to American (AAL). DeNardi, who lowered his price target on United to $100 from $110, keeps a Buy rating on the stock, citing his sum-of-the-parts valuation of its assets.
10/20/17
IMPC
10/20/17
NO CHANGE
Target $57
IMPC
In-Line
United Continental price target lowered to $57 from $63 at Imperial Capital
Imperial Capital analyst Michael Derchin lowered his price target for United Continental to $57 saying margins are likely to decline in fiscal 2018 due to unit revenue weakness in domestic and Pacific as well as higher fuel costs. The analyst keeps an In-Line rating on the shares following United's Q3 results.
DAL Delta Air Lines
$53.27

1 (1.91%)

10/12/17
10/12/17
UPGRADE

On The Fly: Top five analyst upgrades
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Delta Air Lines (DAL) upgraded to Outperform from In-Line at Imperial Capital with analyst Michael Derchin saying the company is likely to grow unit revenues in fiscal year 2018 due to pricing power in its key domestic hubs and improving international results. 2. Transocean (RIG) upgraded to Buy from Neutral at Citi with analyst Scott Gruber saying if an upturn is forthcoming, Transocean should outperform given a "diminution" of concern toward its balance sheet and more new contract catalysts. 3. Canadian Pacific (CP) upgraded to Overweight from Neutral at JPMorgan with analyst Brian Ossenbeck saying he sees a shift to stronger volume growth as the company laps contract losses and records some new contract wins. 4. Infinity upgraded to Outperform from Market Perform at Wells Fargo with analyst Jim Birchenough saying the IPI-549 monotherapy data have a "reasonable likelihood" of proof-of-concept response rate, and with likely validation of tumor macrophage targeting in immunooncology and a unique mechanism of action, upside potential is not reflected in the current stock price. 5. Kroger (KR) upgraded to Equal Weight from Underweight at Stephens with analyst Ben Bienvenu saying he believes the pursuit of strategic alternatives for the convenience store business has potential to unlock value and that the risk/reward is more balanced following the stock's recent pullback. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
10/12/17
IMPC
10/12/17
UPGRADE
Target $63
IMPC
Outperform
Delta Air Lines upgraded to Outperform from In-Line at Imperial Capital
Imperial Capital analyst Michael Derchin upgraded Delta Air Lines to Outperform and raised his price target for the shares to $63 from $50. The company is likely to grow unit revenues in fiscal year 2018 due to pricing power in its key domestic hubs and improving international results, the analyst tells investors in a research note.
10/06/17
DBAB
10/06/17
DOWNGRADE
Target $38
DBAB
Hold
Spirit Airlines downgraded to Hold from Buy at Deutsche Bank
Deutsche Bank analyst Michael Linenberg downgraded Spirit Airlines (SAVE) to Hold and lowered his price target for the shares to $38 from $42. The company's revenue outlook "may face greater downside risk" than peers given the competitive intensity of its markets, Linenberg tells investors in a research note previewing September quarter earnings for Airlines. His favorite names in the sector are Delta Air Lines (DAL), American Airlines (AAL) and Southwest (LUV).
10/03/17
JPMS
10/03/17
NO CHANGE
JPMS
Delta Air Lines estimates lowered on Hurricane Irma impact, says JPMorgan
JPMorgan analyst Jamie Baker lowered his Q3 EPS estimate for Delta Air Lines (DAL) to $1.52 from $1.60 after the company lowered its Q3 operating margin guidance, given the impact of Hurricane Irma. Despite the downward revision, Baker maintained an Overweight rating and $63 price target on Delta shares. Baker also noted that American Airlines (AAL) was likely to guide down as well, as American has a higher percentage of capacity traveling through Florida than Delta, 15.7% to 12.7%, respectively.
AAL American Airlines
$51.93

0.42 (0.82%)

09/27/17
STFL
09/27/17
NO CHANGE
STFL
Big 4 airlines' exposure to Spirit lower than thought, says Stifel
Stifel analyst Joseph DeNardi believes that sell side analysts at other firms may be overstating the degree of overlap that the "Big 4" airlines - American Airlines (AAL), Delta (DAL), Southwest (LUV) and United Continental (UAL) - have with Spirit (SAVE) by not accurately adjusting to include only routes operated within the same time period as competitors. Adjusting to within a 2 hour time channel, he estimates only 5% of United's and Delta's total ASMs are directly exposed to Spirit, while 8% of American's ASMs and 11% of Southwest's are exposed, he tells investors. If United is hoping to influence Spirit's growth, it may choose to continue to compete aggressively, but if its goal is to improve margins, he would expect pricing to stabilize, DeNardi tells investors.
09/25/17
MACQ
09/25/17
INITIATION
Target $47
MACQ
Neutral
American Airlines initiated with a Neutral at Macquarie
Macquarie analyst Susan Donofrio initiated American Airlines with Neutral and $47 price target telling investors the company's financial performance could be pressured given its exposure to current price "skirmishes" between Spirit and United.

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