Goldman Sachs Upgrades United Continental (UAL) to Buy; Multiples to Liftoff

November 22, 2013 6:53 AM EST Send to a Friend
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Price: $56.25 --0%

Rating Summary:
    17 Buy, 3 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 4 | Down: 7 | New: 18
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Goldman Sachs upgraded United Continental (NYSE: UAL) from Neutral to Buy with a price target of $44.00 (from $35.00), saying 2014 earnings growth to lift multiples.

Analyst Tom Kim cites: "(1) The carrier has been an under-earner that we think is poised to post outsized earnings growth in 2014. We expect EPS to almost double in 2014 to $4.87. (2) The stock is undervalued versus its global network peers. UAL trades at 17% discount at 5.0x adjusted EV/EBITDAR (including op leases) vs. 6.0x for its closest global comparables. As investor confidence in UAL's earnings power increases, we expect the discount at which the stock trades versus its peers narrows."

For an analyst ratings summary and ratings history on United Continental click here. For more ratings news on United Continental click here.

Shares of United Continental closed at $37.11 yesterday.


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