Airline Sector Higher on Several Analyst Calls (UAUA, SKYW, DAL, more)
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Price: $23.66 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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The airline sector is modestly higher this morning despite broader markets which have sold-off since the opening bell. Traders are attributing the mild strength to several analyst calls, as well as crude oil which is trading marginally lower.
First, analysts at Bank of America upgraded to airline stocks earlier: UAL Corp. (Nasdaq: UAUA) and SkyWest (Nasdaq: SKYW). The firm moved UAL from Neutral to Buy and SkyWest from Underperform to Neutral.
Secondly, an analyst at Calyon Securities issued a sector note saying that despite likely further weakness in the broad stock market, investors should purchase these stocks now as they could "appreciate sharply" as the economy rebounds. The analyst specifically recommended "well capitalized airlines" such as Alaska Air (NYSE: ALK), Delta Air Lines (NYSE: DAL) and Continental (NYSE: CAL).
The analyst said, "With the economy still very weak and possibly still falling with any timing of a recovery uncertain, we believe the best strategy for investors would be to buy a basket of airline stocks. The best-case scenario is that when a recovery comes and assuming there are no bankruptcy filings, all stocks will appreciate sharply from the current depressed levels."
Around the airline sector:
First, analysts at Bank of America upgraded to airline stocks earlier: UAL Corp. (Nasdaq: UAUA) and SkyWest (Nasdaq: SKYW). The firm moved UAL from Neutral to Buy and SkyWest from Underperform to Neutral.
Secondly, an analyst at Calyon Securities issued a sector note saying that despite likely further weakness in the broad stock market, investors should purchase these stocks now as they could "appreciate sharply" as the economy rebounds. The analyst specifically recommended "well capitalized airlines" such as Alaska Air (NYSE: ALK), Delta Air Lines (NYSE: DAL) and Continental (NYSE: CAL).
The analyst said, "With the economy still very weak and possibly still falling with any timing of a recovery uncertain, we believe the best strategy for investors would be to buy a basket of airline stocks. The best-case scenario is that when a recovery comes and assuming there are no bankruptcy filings, all stocks will appreciate sharply from the current depressed levels."
Around the airline sector:
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