CAL’s Unit Revenues See Significant Growth
Analysts at FTN Equity Capital Markets maintain their "buy" rating on Continental Airlines Inc. (NYSE: CAL) while raising their estimates for the company. The target price for CAL is set to $24.
According to FTN Equity Capital Markets, Continental Airlines’ unit revenues during the month of December were better than expected. CAL is likely to have witnessed significant sequential growth in revenues through 4Q09, the analysts say. The company benefited from a greater mix of higher fare paying passengers. Moreover, the company was able to pass through fare surcharges during the peak travel days over the Christmas holidays, the analysts mention.
Continental Airlines is leveraged to benefit from the global economic recovery that is expected during 2010. The analysts believe that CAL will turn profitable during 2010. FTN Equity Capital Markets has raised its EPS estimate for 4Q09 from -$0.38 to -$0.09.
