Airlines Jump Higher As Wall Street Gets Positive On the Sector (FAA, UAUA)

Airline stocks are higher today after JP Morgan upgraded the sector from Neutral to Overweight, saying they now expect winter to pass with nary a bankruptcy in sight. The firm also said for the first time in a long time, close-in estimates look about right, while 2010 consensus could stand to improve.

In addition to the positive JP Morgan report, Barclays also made some positive comments on the sector, saying they think many underestimate the potential for a significant airline revenue recovery. With recovery expectations muted, they think even a relatively modest recovery would pave the way for a profitable 2010 and materially higher share prices.

Shares of UAL Corporation (NASDAQ: UAUA) are leading the group, rising 18% after JP Morgan issued a two-notches from Underweight to Overweight. UAL is also one of Barclays favorites, and they have an aggressive $19 price target on the name.

JP Morgan also upgraded US Airways Group, Inc. (NYSE: LCC), but only to Neutral. They downgraded AirTran Holdings Inc. (NYSE: AAI) and JetBlue Airways Corporation (Nasdaq: JBLU) from Overweight to Neutral, despite still attractive risk-reward and healthy potential upside to price targets.

Representing the broad move in the sector, ETF Claymore/NYSE Arca Airline (NYSE: FAA) is up 6% currently.

For more color on the analysts calls you can view this report from Notablecalls.

Real-Time Market Moving News Two-Weeks FREE http://www.streetinsider.com/premium_content.php

You May Also Be Interested In

• Winnebago Industries extends $350M credit facility to 2031
• reAlpha completes $8.5M InstaMortgage acquisition
• Rosenblatt Reiterates Buy Rating on Super Micro Computer (SMCI)