Wheels Up Initiated With Outperform At Credit Suisse

Credit Suisse analyst Stephen Ju initiated Wheels Up Experience Inc UP with an Outperform rating and a price target of $14, implying an upside of 92%.
Wheels Up released a non-membership offering allowing fliers to purchase flights without paying upfront for a membership, the analyst notes.
Ju believes this cohort will eventually have the option to utilize shared flights and shuttles, thus further expanding the company's total addressable market potential "as the lower price points should onboard new users and increase usage from members across all tiers."
He further adds that these services could reduce the cost to fly private by 50%, potentially resulting in market expansion from $31 billion currently to $80 billion. Also, the Delta Air Lines Inc DAL co-marketing agreement provides Wheels Up with access to nearly 200 million potential fliers.
Price Action: UP shares are trading higher by 10.2% at $7.26 on the last check Friday.