UPDATE: JP Morgan Raises PT to $19 on US Airways Group on Lower Fuel Cost, Higher Margins
JP Morgan reiterated its Overweight rating on US Airways Group (NYSE: LCC) and increased its price target from $17 to $19 in a research report published today.
JP Morgan commented, "Higher completion factors lead to greater 2Q consolidated capacity, rising 1% vs. flattish expectations. In turn, consolidated ex-fuel CASM emerged at 2.2% vs. 3.0%, while RASM rose 6.9% vs. our 7.9% estimate. Coupled with lower fuel prices, guidance implies an operating profit of $397mm vs. our $384mm. Resulting 10.6% operating margin expected to rival that of LUV, exceed that of DAL (9.3%) and UAL (9.0%) though fall short of expected outcomes at JBLU (11.1%) and ALK (15.4%)."
Shares of US Airways were trading at $13.47 at the time of posting, up 1.97% from Tuesday's market close.
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