Cowen Calls Decline in Airline Stocks Following Report of DoJ Suit Against US Air/AMR 'Overdone'

Cowen's Helane Becker issued an intraday research note on US Airways

, AMR Tuesday afternoon following a report the DoJ is planning to a suit to block a merger between the two. Becker believes a US Air, American deal will "eventually" get done, but noted the combined entity would likely be required to give up slots a higher-profile airports like Reagan National. Becker called the sector-wide sell off in the Airline group "overdone." She believes investors should concentrate on United Continental

and Delta

. The Cowen analyst maintains Outperform ratings on shares of Delta, United Continental, US Air, Spirit Air

, Southwest

and Alaska Air

.