Goldman Sachs Starts United Continental (UAL) at Sell; Expect 2H Correction

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Goldman Sachs initiates coverage on United Continental (NYSE: UAL) with a Sell. PT $21.30.

Analyst, Tom Kim, said, "Airline stocks have performed strongly YTD, significantly outperforming the S&P500 (by 11%), our transportation coverage universe (by 10%), and the global airline industry (by 12%), and in our view, are poised to see a correction in 2H12. The key negative catalyst should come from further consensus EPS downgrades, even after recent cuts. We do not think the market is assuming the weakness in traffic growth or the rebound in jet fuel prices that we expect will weigh on share performance."

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 $24.79 yesterday, with a 52 week range of $15.51-$25.84.

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