UPDATE: Deutsche Bank Upgrades United Continental (UAL) to Buy

Deutsche Bank analyst Michael Linenberg upgraded United Continental (NASDAQ: UAL) from Hold to Buy with a price target of $60.00 (from $56.00).

The analyst comments "We are raising our 12-month price target (PT) on UAL shares from $56 to $60 which is derived by applying a ~5.5 EV/EBITDAR multiple to our 2022 EBITDAR estimate and a ~4.5 EV/EBITDAR multiple to our 2023 EBITDAR estimate (which compares to the stock's historical trading range of 5x - 7x, although multiples can trade above the range during a recession/recovery period). The downside risk to our price target is if we fail to see a leveling-off in new COVID-19 cases. Fuel price volatility is also a key downside/upside risk: every 10% move in jet fuel impacts our 2021 EPS estimate by $1.15. Other downside risk factors are economic weakness, government regulation, taxation, airport constraints, safety concerns, the threat of terrorism and war, associated costs/risks with labor negotiations and the revaluation of the stock market resulting in a higher equity risk premium being applied to airline shares."

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 $48.03 yesterday.

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