Jesup Narrows Loss Estimates For United (UAUA)
March 17, 2010 10:16 AM
Jesup & Lamont narrowed their loss estimate on UAL Corp. (NASDAQ:UAUA). They now estimate a loss of $1.02 compared to their previous estimate of $1.73 loss per share.
For the first quarter, management is estimating passenger unit revenue (P-RASM) increasing 17%, in line with our forecast that P-RASM would increase by 17% to 10.54 cents.
Jesup also raised their full year EPS estimate to $2.12 from its prior estimate of $1.80.
One factor contributing to this estimate is lower than originally estimated fuel costs.
Jesup analysts say, “Based on a multiple of 10x estimated 2010 EPS of $2.12, we believe these shares can trade to $21 per share, so that at current prices there is about 5% to the price target, which does not justify a buy rating.”
Jesup reiterates its Hold rating on shares of UAL Corporation.
