For what it's worth:
CHICAGO (TheStreet) -- A veteran airline analyst downgraded shares of United (UAL_)
In a scathing report issued Thursday, Imperial Capital analyst Bob McAdoo reduced his rating for United to "in-line" from "outperform," and cut his one-year price target to $47 from $55. Shortly before noon, United shares were trading at $41.64, down 17 cents.
"From a trading perspective, shares of UAL may continue to move upward as sector sentiment remains positive," McAdoo wrote. However, he said, "United's presentations and published plans (indicate it) will take at least four years to close $2 billion of the gap on American (AAL_)
What United should do, McAdoo argued, is to close the Dulles hub, given its proximity to the hub in Newark, N.J. Other airlines have realized synergies by closing hubs that are close together, he said, and United has already moved to close its redundant Cleveland hub.
Moreover, local passengers to Washington generally prefer to fly to US Airways' hub at Reagan National. McAdoo estimated that at best, Dulles flights can get only 20% to 30% of local traffic to Washington.
http://www.thestreet.com/story/12758353/1/united-should-close-dulles-hub-analyst-says-as-he-cuts-rating.html?puc=yahoo&cm_ven=YAHOO
CHICAGO (TheStreet) -- A veteran airline analyst downgraded shares of United (UAL_)
In a scathing report issued Thursday, Imperial Capital analyst Bob McAdoo reduced his rating for United to "in-line" from "outperform," and cut his one-year price target to $47 from $55. Shortly before noon, United shares were trading at $41.64, down 17 cents.
"From a trading perspective, shares of UAL may continue to move upward as sector sentiment remains positive," McAdoo wrote. However, he said, "United's presentations and published plans (indicate it) will take at least four years to close $2 billion of the gap on American (AAL_)
What United should do, McAdoo argued, is to close the Dulles hub, given its proximity to the hub in Newark, N.J. Other airlines have realized synergies by closing hubs that are close together, he said, and United has already moved to close its redundant Cleveland hub.
Moreover, local passengers to Washington generally prefer to fly to US Airways' hub at Reagan National. McAdoo estimated that at best, Dulles flights can get only 20% to 30% of local traffic to Washington.
http://www.thestreet.com/story/12758353/1/united-should-close-dulles-hub-analyst-says-as-he-cuts-rating.html?puc=yahoo&cm_ven=YAHOO