Airline Shares Rise After UBS Raises Target Prices (AMR, DAL, CAL, UAUA)
March 10, 2010 1:58 PM
U.S. airline stocks rose for a second straight day after UBS (NYSE: UBS) raised its target price on several carriers, and Jesup & Lamont Securities forecast a smaller first-quarter loss for Delta Air Lines, Inc. (NYSE: DAL).
UBS increased its target prices for American Airlines parent AMR Corp. (NYSE: AMR), Continental Airlines, Inc. (NYSE: CAL), and UAL Corp. (NASDAQ: UAUA), the parent company of United Airlines.
Jesup & Lamont (AMEX: JLI) analyst Helane Becker said that improved business demand, and capacity reductions would help Delta narrow its first-quarter loss. She also said if Delta improved its performance in March, the airline might be profitable in the first quarter.
AMR shares rose more than 5% on the New York Stock Exchange to $10.33, while Delta was up almost 5% to $13.44. The Arca Airline index was up 3.3%.
