UPDATE: United Continental (UAL) PT Raised to $94 at Cowen

(updated to add analyst comment, EPS review, market color)

Cowen analyst Helane Becker raised the price target on United Continental (NASDAQ: UAL) to $94.00 (from $82.00) while maintaining a Market Perform rating.

United Airlines (NASDAQ: UAL) reported third quarter earnings yesterday after market close. Highlights of the earnings release:

• UAL reported third-quarter adjusted net income of $837 million, adjusted diluted earnings per share of $3.06, adjusted pre-tax earnings of $1.1 billion and adjusted pre-tax margin of 9.7 percent.
• Consolidated passenger revenue per available seat mile (PRASM) increased 6.1 percent year-over-year, above the high end of the company's third-quarter 2018 guidance range of up 4 percent to 6 percent.
• Consolidated unit cost per available seat mile (CASM) increased 6.4 percent year-over-year.
• Consolidated CASM, excluding special charges, third-party business expenses, fuel and profit sharing, decreased 0.4 percent year-over-year.
• UAL's mid-continent hubs in Chicago, Denver and Houston had year-over-year capacity growth of 9.7 percent in the third quarter and led the system in unit revenue growth performance in the quarter.
• UAL now expects full-year 2018 adjusted diluted earnings per share3 to be $8.00 to $8.75. The company currently expects to recapture approximately 90 percent of the estimated $2.5 billion year-over year increase in full-year 2018 fuel expense.

"United is reiterating their 2020 EPS guidance range of $11 to $13 / share and expects margin improvement in 2019 despite the recent increase in jet fuel cost. United's midcon strategy and corporate revenue gains have led to a 90% fuel recapture in 2018. Management is confident with the plan and needs to continue to execute in the near-term to drive further revenue gains," the analyst says in response to earnings reported yesterday after close.

Shares of UAL are currently trading up +6,44% with above average volume of about 7.3 million shares in afternoon trading as investors react to earnings, while SPY is up +0,12%

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