Lehman Gets Bullish on Airlines (NWA, UAUA, LCC, JBLU, AMR, more...)

The beaten-up airline sector is higher today after Lehman Brothers turned bullish on the group. The firm said the major changes in the sector, to combat record oil prices, increases the investment attractiveness. Analyst Gary Chase said, "the unprecedented nature of this restructuring could bring with it considerable opportunity."

Chase upgraded Northwest Airlines (NYSE: NWA) and UAL Corp (NYSE: UAUA) from Equal Weight to Overweight and adjusted his price targets to $10 and $16, respectively.

Chase maintained his Equal-Weight rating on US Airways (NYSE: LCC), but lowered his price target from $6 to $4. He maintained his Overweight rating on JetBlue (Nasdaq: JBLU), but lowered his price target from $6.00 to $5.50. He also maintained his Equal-Weight rating and adjusted his price target on AMR (NYSE: AMR) from $8.50 to $9.

Chase maintained his Overweight rating and $9 price target on Delta (NYSE: DAL), maintained his Equal Weight rating and $3.50 price target on AirTran Holdings (NYSE: AAI). He also maintained his Underweight and $13 price target on Continental Airlines (NYSE: CAL), maintained his Equal-Weight and $11 target on Southwest Airlines (NYSE: LUV) and Equal-Weight rating and $17 price target on Alaska Air (NYSE: ALK).

A number of airlines stocks are significantly higher today; Northwest is up 13%, UAL is up 11%, US Airways is up 10%, AMR is up 6%, and Delta is up 11%.

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