Barclays on U.S. Airlines: Capacity Reductions Drive 3Q11 Upside
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Price: $121.16 --0%
Rating Summary:
27 Buy, 8 Hold, 0 Sell
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Today's Overall Ratings:
Up: 13 | Down: 22 | New: 8
Rating Summary:
27 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 22 | New: 8
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Barclays on U.S. Airlines: Capacity Reductions Drive 3Q11 Upside
Barclays analyst, Gary Chase, said, "Capacity reductions are helping to drive the industry to a better near-term outcome than we previously expected and the emerging capacity picture for 2012 is rather encouraging. Minor near-term gains notwithstanding, the stocks seem largely indifferent to these positive developments. In our view, this disparity represents opportunity. Our focus remains on United (NYSE: UAL) and Delta (NYSE: DAL)."
"Revenue previews better than we thought: Revenue previews for September and 3Q11 are better than our admittedly conservative prior forecast for September. While we have raised our 3Q11 estimates to reflect that upside, we are leaving our 4Q11 estimates, which assume deceleration largely unchanged."
Barclays maintains an OW rating on UAL, lowers price target from $35 to $33, raises FY11 EPS estimate from $2.98 to $3.45, but lowers FY12 from $6.30 to $5.80.
Maintains an OW rating on DAL, raises price target from $14 to $15, raises FY11 EPS estimate from $0.81 to $1.12 and FY12 from $2.25 to $2.50.
Maintains an OW rating on Allegiant Travel (Nasdaq: ALGT), raises price target from $57 to $62, raises FY11 EPS estimate from $2.21 to $2.29 and FY12 from $3.15 to $3.40.
Maintains an EW rating on Alaska Air (NYSE: ALK) and $89 price target, raises FY11 EPS estimate from $7.71 to $7.92 and FY12 from $8.50 to $8.85.
Maintains an OW rating on AMR Corp (NYSE: AMR) and $9 price target, raises FY11 EPS estimate from -3.96 to -3.60, but lowers FY12 from -1.60 to -1.80.
Maintains an EW rating on JetBlue (Nasdaq: JBLU) and $6 price target, raises FY11 EPS estimate from $0.06 to $0.13, but maintains FY12 at $0.25.
Maintains an EW rating on Southwest (NYSE: LUV) and $12 price target, raises FY11 EPS estimate from $0.23 to $0.26 but maintains FY12 at $0.50.
Maintains an OW rating on Spirit (Nasdaq: SAVE) and $17 price target, raises FY11 EPS estimate from $0.97 to $0.98, maintains FY12 at $1.60.
Maintains an EW rating on US Airways (NYSE: LCC) and $11 price target, raises FY11 EPS estimate from -0.52 to -0.13 and FY12 from $1.00 to $1.05.
Barclays analyst, Gary Chase, said, "Capacity reductions are helping to drive the industry to a better near-term outcome than we previously expected and the emerging capacity picture for 2012 is rather encouraging. Minor near-term gains notwithstanding, the stocks seem largely indifferent to these positive developments. In our view, this disparity represents opportunity. Our focus remains on United (NYSE: UAL) and Delta (NYSE: DAL)."
"Revenue previews better than we thought: Revenue previews for September and 3Q11 are better than our admittedly conservative prior forecast for September. While we have raised our 3Q11 estimates to reflect that upside, we are leaving our 4Q11 estimates, which assume deceleration largely unchanged."
Barclays maintains an OW rating on UAL, lowers price target from $35 to $33, raises FY11 EPS estimate from $2.98 to $3.45, but lowers FY12 from $6.30 to $5.80.
Maintains an OW rating on DAL, raises price target from $14 to $15, raises FY11 EPS estimate from $0.81 to $1.12 and FY12 from $2.25 to $2.50.
Maintains an OW rating on Allegiant Travel (Nasdaq: ALGT), raises price target from $57 to $62, raises FY11 EPS estimate from $2.21 to $2.29 and FY12 from $3.15 to $3.40.
Maintains an EW rating on Alaska Air (NYSE: ALK) and $89 price target, raises FY11 EPS estimate from $7.71 to $7.92 and FY12 from $8.50 to $8.85.
Maintains an OW rating on AMR Corp (NYSE: AMR) and $9 price target, raises FY11 EPS estimate from -3.96 to -3.60, but lowers FY12 from -1.60 to -1.80.
Maintains an EW rating on JetBlue (Nasdaq: JBLU) and $6 price target, raises FY11 EPS estimate from $0.06 to $0.13, but maintains FY12 at $0.25.
Maintains an EW rating on Southwest (NYSE: LUV) and $12 price target, raises FY11 EPS estimate from $0.23 to $0.26 but maintains FY12 at $0.50.
Maintains an OW rating on Spirit (Nasdaq: SAVE) and $17 price target, raises FY11 EPS estimate from $0.97 to $0.98, maintains FY12 at $1.60.
Maintains an EW rating on US Airways (NYSE: LCC) and $11 price target, raises FY11 EPS estimate from -0.52 to -0.13 and FY12 from $1.00 to $1.05.
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