UPDATE: Wolfe Research Upgrades United Continental (UAL) to Peerperform
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Wolfe Research analyst Hunter Keay upgraded United Continental (NASDAQ: UAL) from Underperform to Peerperform.
The analyst comments "We believe UAL’s $2B cost savings goal is unrealistic. We believe UAL is underestimating the costs required to maintain service levels, which matters given the new importance of NPS as a driver of future executive pay. But we view cost creep as an industry issue, and we like the setup for airline stocks when most of them have the same problem. High fuel prices help, too. If UAL (and others) aim to achieve better margins they will have to lean harder on pricing than they expect. UAL’s growth appetite may not be as threatening as it was pre-Covid."
Shares of United Continental closed at $54.24 yesterday.
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