Why Barclays Thinks UAL Earnings Could Improve

UAL is currently trading at $76. Its 52-week high is $83.04, and its 52-week low is $37.64.

Sarah Sands - Author

Jun. 29 2017, Updated 12:05 p.m. ET

uploads///Last One Year Performance of United Continental Holdings

Barclays on United Continental Holdings

Barclays (BCS) has focused its analysis on various sectors, and its stock picks aren’t limited to a particular sector. The investment firm provided a 37% upside for United Continental Holdings (UAL) from its level of $76.79 on Friday, June 23, 2017. It also set a target price of $105 for UAL.

United Continental Holdings operates airline services in Europe (VGK) (IEV), North America, Africa, Latin America (ILF), and Asia-Pacific. The airline industry is a cyclical industry. Major cyclical industries are expected to perform well, as economic growth seems to be showing a gradual recovery.

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Barclays wrote, “the company has recently undergone a meaningful change in leadership that we expect will improve the culture and focus of the organization. Plans to match or exceed industry-leading margins through a variety of revenue and cost initiatives could improve United earnings by more than 40% from 2017 to 2020.”

UAL is currently trading at $76. Its 52-week high is $83.04, and its 52-week low is $37.64. The stock returned nearly 4.6% on a year-to-date basis as of June 27, 2017. It has risen nearly 83% in the past year. The stock provided positive earnings growth and strong revenue growth in 2015 and 2016.

In the next part of this series, we’ll analyze Barclays’ view on Lululemon Athletica (LULU).


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