According to a Reuters consensus, 62.5% of the analysts tracking United Continental (UAL) have a “buy” recommendation on the stock. The remaining 37.5% have a “hold” rating on the stock.
After the company’s 3Q16 earnings, Barclays, Citigroup, and Bernstein initiated coverage on the stock. Barclays has an “overweight” rating, Citigroup has a “neutral” rating, and Bernstein has a “market perform” rating. Morgan Stanley has downgraded the stock from “overweight” to “equal-weight,” while Imperial Capital has downgraded the stock from “outperform” to “in-line.” Bank of America Merrill Lynch has upgraded the stock from “neutral” to “buy.” Most analysts have, however, substantially increased their target prices.
It’s important to be aware of analyst recommendations, as they can significantly affect a company’s stock price. Changes in a popular analyst’s view can cause a significant short-term movement in the stock price.
The stock’s consensus-12-month target price is $81.28 as compared to $58.72 at the end of 3Q16 and $63.62 at the end of 2Q16. The current target price indicates a 10.4% return potential as of January 10, 2017. United Continental has the highest target price of $105, while the lowest target price is $65.
In the following series, we look at what investors can expect for 4Q16 and also for the full year 2016. We’ll also take a sneak peek into expectations for 2017 and discuss key indicators that investors should look out for.
Next, we’ll discuss analyst estimates for United Continental’s revenue for the next year.