Morgan Stanley Comments on the Airline Industry - Alaska Air Gr (NYSE:ALK), American Airlines Gr (NASDAQ:AAL)

In a research note released June 30, Morgan Stanley analysts provided an overview of the airline industry and highlighted their bullishness on United Continental Holdings, Inc.

UAL

calling it the "most interesting contrarian value idea" across their coverage. To justify their opinion on United Continental the analysts listed three main factors

Leverage to the "Stronger For Longer cycle"
Management's "self-help" initiatives are conservative
An "uniquely bearish" sentiment towards the stock

In a addition to highlighting their bullish view of United Continental, the analysts at Morgan Stanley provided ratings, price targets, and estimates for other companies in the sector.

United Continental UAL - Overweight; $60 PT; EPS estimate for calendar-year 2014 - $4.40, 2015 - $8.00
American Airlines Group Inc. AAL - Overweight; $50; 2014 - $5.75, 2015 - $7.00
Delta Air Lines Inc. DAL - Overweight; $46; 2014 - $3.35, 2015 - $4.00
Alaska Air Group, Inc. ALK - Equal-weight; $107; 2014 - $7.30, 2015 - $8.20
Hawaiian Holdings Inc. HA - Equal-weight; $16, 2014 - $1.45, 2015 - $1.60

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