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Analysts Are Bullish on United Continental

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Updated

Analyst recommendations

According to Bloomberg consensus, 70.6% of the 12 analysts tracking United Continental Holdings (UAL) have given the stock a “buy” recommendation. Five analysts, or 29.4%, have given it a “hold” rating, and none has recommended a “sell.”

This is lower than 93.8% of analysts who were positive on the stock in 4Q15. That means three to four analysts have downgraded the stock. The most recent downgrade was from Deutsche Bank, which also downgraded UAL’s peers American Airlines (AAL) and Delta Air Lines (DAL), citing macroeconomic concerns.

It’s important to be aware of analyst recommendations, as they can significantly affect a company’s stock price. Changes to a popular analyst’s view can cause a significant short-term movement in the stock.

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Target price

The consensus 12-month target price for UAL stock is $72.50, which indicates a 27.8% return potential as of April 2, 2016. Daniel McKenzie of the Buckingham Research Group has the highest target price of $92, followed by a target price of $88 from Hunter K. Keay of Wolfe Research. Jack Atkins from Stephens and Helane R. Becker from Cowen have the lowest target prices of $64 and $65, respectively.

Series overview

United Continental (UAL) is expected to announce its first quarter earnings for 2016 on April 21, 2016.

In this series, we’ll be looking at what you can expect for 1Q16 and, more importantly, for 2016. We’ll also look at key indicators that investors should watch.

The PowerShares Dynamic Leisure & Entertainment ETF (PEJ) invests ~5% each in Southwest Airlines (LUV), AAL, DAL, and UAL.

In the next part of the series, we’ll see what United Continental’s revenue estimates are for 2016.

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