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Analysts Are Recommending ‘Buys’ on UAL ahead of Its Q4 Results

Andrew Brunton
Analysts Are Recommending ‘Buys’ on UAL ahead of Its Q4 Results

Can United Airlines Keep Its Momentum in Q4?(Continued from Prior Part)## Analysts’ bullish stanceUnited Continental (UAL) has a consensus rating of ~2.16 from analysts polled by Reuters. There’s a consensus “buy” recommendation on the stock.Six out of 19 analysts have given it “strong buy” recommendations, five have given it “buy” recommendations, seven have given it “hold” recommendations, and the remaining one has given it a “sell” recommendation.Wall Street analysts raised their consensus 12-month target price on United Continental stock after its third-quarter earnings results on October 16. Currently, their consensus estimate is $103.41, 9.2% higher than their estimate of $94.69 before the company announced its third-quarter earnings results. Based on its closing price of $83.76 on January 9, United Continental has a return potential of 23.5%.Furthermore, the stock has witnessed sharp upward estimate revisions for EPS in 2018 and 2019. The mean estimate for the company’s 2018 EPS has increased to $8.79 from its level of $8.22 on October 16. Its 2019 EPS estimate has improved to $10.95 from $9.57.## Peers’ recommendationsAnalysts are bullish on the entire airline industry (IYT) and have provided “buy” recommendations on Southwest Airlines (LUV), Delta Air Lines (DAL), and American Airlines (AAL).Seven of the 21 analysts covering Southwest Airlines have given it “strong buy” recommendations, seven have given it “buy” recommendations, six have given it “hold” recommendations, and one has given it a “sell” recommendation. Analysts’ target price of $61.47 on the stock represents a potential 25.2% upside from its current price of $49.08.Eight of the 20 analysts covering Delta Air Lines have given it “strong buy” recommendations, ten have given it “buy” recommendations, and the remaining two have given it “hold” recommendations. Its target price of $66.79 represents a potential 37.8% upside from its current price of $48.47.Of the 19 analysts covering American Airlines stock, five have given it “strong buy” recommendations, nine have given it “buy” recommendations, and five have given it “hold” recommendations. Its target price of $48.12 represents a potential ~44% upside from its current price of $33.42.Browse this series on Market Realist: * Part 1 - United Airlines’ Q4 EPS Are Expected to Jump ~43% * Part 2 - Falling Oil Prices Are Expected to Drive UAL’s Q4 Profitability