Market Overview

Wall Street Firm Bullish On Airlines, Ups Estimates And Price Targets

Share:
Wall Street Firm Bullish On Airlines, Ups Estimates And Price Targets

Most airline stocks have had a rough go of it so far in 2016, but Buckingham Research Group analyst Daniel McKenzie believes things are looking up for Q1 earnings season. Buckingham has raised its Q1 earnings estimates for JetBlue Airways Corporation (NASDAQ: JBLU) and Delta Air Lines, Inc. (NYSE: DAL) and upped its price targets for Delta, American Airlines Group Inc (NASDAQ: AAL) and United Continental Holdings Inc (NYSE: UAL).

McKenzie remains bullish on airline stocks and sees their compelling valuations providing a floor in the near term.

“Today, the XAL remains 13.5 percent off a 52-week high and from our perspective, earnings could fall 40 percent on average for the Big 3 and valuations would remain attractive (e.g. with AAL’s stock currently trading at $39.13, we could cut our 2016 EPS by 30 percent and the current valuation implies a 10x P/E/ multiple) in the context of otherwise improving fundamentals and massive FCF,” McKenzie explained.

Related Link: Airline Stocks Could See 'Modest Relief' Soon

He noted that at current valuations, many of the airlines would chose to go private before they would ever consider bankruptcy.

Ahead Of Q1

Headed into Q1 earnings season, Buckingham has Buy ratings on Delta, American, JetBlue, United, Southwest Airlines Co (NYSE: LUV), Alaska Air Group, Inc. (NYSE: ALK) and Spirit Airlines Incorporated (NASDAQ: SAVE).

Disclosure: The author holds no position in the stocks mentioned.

Image Credit: Public Domain

Latest Ratings for DAL

DateFirmActionFromTo
Jan 2021Vertical GroupUpgradesHoldBuy
Jan 2021Morgan StanleyMaintainsOverweight
Dec 2020Deutsche bankDowngradesBuyHold

View More Analyst Ratings for DAL
View the Latest Analyst Ratings

 

Related Articles (JBLU + DAL)

View Comments and Join the Discussion!

Posted-In: Analyst Color Price Target Previews Travel Top Stories Analyst Ratings Trading Ideas General Best of Benzinga

Latest Ratings

StockFirmActionPT
MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
NVDASusquehannaMaintains625.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com