UPDATE: Hudson Raises PT on US Airways to $14

Hudson is out with its report today on US Airways LCC, raising its PT from $11 to $14. In a note to clients, Hudson writes, "No change to our 2011 estimate though we are comfortable introducing a 2012 EPS of $2.40/share (which is predicated on LCC achieving a 4.5% improvement in pricing, jet fuel at $3.45/gal, and a 5.4% operating margin –modest assumptions). We factor in to our outlook a partial benefit from the slot swap. Given our 6-12 month timeframe, we are shifting our valuation forward to 2012 and as such, our $14 PT (vs prior $11) is based on shares trading at 9x our 2012 EPS (which we fully tax for purposes of deriving our PT). We assign no value to LCC's NOLs as the airline industry typically begins losing money again before they've been exhausted." Hudson maintains Buy on LCC. At the time of posting, shares of LCC were trading at $9.85, down 1.50% from Monday's close.