Dahlman Rose Maintaining Hold On United Continental Holdings (UAL)

Dahlman Rose and Co. analyst Helane Becker is maintaining her Hold rating on United Continental Holdings Inc. UAL due to capacity concerns. In a note to clients, Becker writes, "We believe industry consolidation is good for capacity restraint, and given that, we anticipate United will adjust its capacity over the next year as it works through the merger with Continental Airlines. The estimated synergies of the merger are $1.2 billion. We believe the shares may trade in a narrow range while the company adjusts capacity and works through the merger." Shares of UAL gained 25 cents yesterday to close at $23.66.