Citi's Neutral-To-Bullish Call On The Airliners

“The US airline industry has been hosting a renaissance party for investors,” Citi’s Kevin Crissey said in a report. All the stocks in this segment have at least tripled over the last five years.

Top Pick

Crissey named American Airlines Group Inc AAL as the top pick among U.S. airlines, saying the company would benefit from “unique post-merger efficiency opportunities” and lower capex. He initiated coverage of the company with a Buy rating and a price target of $55.

Other Buy-Rated Stocks

• Allegiant Travel Company ALGT: Initiated at Buy with a price target of $185.
• Delta Air Lines, Inc. DAL: Initiated at Buy with a price target of $61.
• Southwest Airlines Co LUV: Initiated at Buy with a price target of $57.

Neutral-Rated Stocks

• Alaska Air Group, Inc. ALK: Initiated at Neutral with a price target of $81.
• Hawaiian Holdings, Inc. HA: Initiated at Neutral with a price target of $48.
• JetBlue Airways Corporation JBLU: Initiated at Neutral with a price target of $22.
• United Continental Holdings Inc UAL: Initiated at Neutral with a price target of $69

Downgrade

• Spirit Airlines Incorporated SAVE: Downgraded from Buy to Neutral, while raising the price target from $52 to $61.

“We think valuation on SAVE shares already discounts a substantial portion of its near-term growth opportunities,” the analyst mentioned.

In Friday's Pre-Market

• Alaska closed Thursday at $78.85.
• Allegiant closed Thursday at $160.80.
• American was up 1.03 percent at $46.30.
• Delta was up 1.26 percent at $49.12.
• Hawaiian was up 2.03 percent at $50.
• JetBlue was up 0.05 percent at $20.75.
• Southwest was up 0.66 percent at $47.
• Spirit was down 1.43 percent at $53.10.
• United was up 0.72 percent at $68.35.