In a research note Monday, Morgan Stanley analysts provided an overview of the airline industry and highlighted their bullishness on United Continental (NYSE: UAL) calling it the "most interesting contrarian value idea" across their coverage.
To justify their opinion on United Continental, the analysts listed three main factors:
- Leverage to the "Stronger For Longer cycle."
- Management's "self-help" initiatives are conservative.
- An "uniquely bearish" sentiment towards the stock.
In a addition to highlighting their bullish view of United Continental, the analysts at Morgan Stanley provided ratings, price targets and estimates for other companies in the sector.
- United Continental - Overweight; $60 PT; EPS estimate for calendar-year 2014 - $4.40, 2015 - $8.00
- American Airlines Group (NASDAQ: AAL) - Overweight; $50; 2014 - $5.75, 2015 - $7.00
- Delta Air Lines (NYSE: DAL) - Overweight; $46; 2014 - $3.35, 2015 - $4.00
- Alaska Air Group (NYSE: ALK) - Equal-weight; $107; 2014 - $7.30, 2015 - $8.20
- Hawaiian Holdings (NASDAQ: HA) - Equal-weight; $16, 2014 - $1.45, 2015 - $1.60
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