US Airways New 52-Week High on Upgrade
Monday April 24, 2:26 pm ET
Analyst Upgrade Boosts US Airways Stock, Airline Stocks Take Off
NEW YORK (AP) -- US Airways Group Inc. stock rose $3.52, or 9.3 percent, to a new 52-week high of $41.25 in afternoon trading Monday, after an analyst upgraded the company on predictions of strong revenue growth.
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Bob McAdoo, an analyst with Prudential Equity Group LLC, wrote in a research report that he expects US Airways to make $6.45 profit per share this year, up from his previous estimate of 73 cents per share, excluding some one-time costs. McAdoo upgraded US Airways to "Overweight" from "Neutral Weight" and boosted his price target for the stock to $48 from $40.
The stock jumped $3.37 Monday afternoon to $41.10 on the New York Stock Exchange. It began trading in September after US Airways left Chapter 11 bankruptcy protection. Its previous high was $40.75.
The stock led a strong afternoon for airlines, with Continental Airlines Inc. rising $1.77, or 7.4 percent, to $25.69 and American Airlines owner AMR Corp. rose $1.28, or 5.7 percent, to $23.74.
McAdoo predicts a first-quarter profit of 10 cents per share for US Airways, versus previously forecasting $1.73 loss, excluding costs related to its merger with America West Holdings Corp. Analysts, on average, are expecting a loss of 48 cents per share, according to a Thomson Financial poll.
McAdoo said US Airways' lower costs and improved revenue will drive the improvement, even in the face of high oil prices.
A number of airlines have posted improved revenue numbers this quarter, as fare increases designed to offset higher fuel prices kick in. Both AMR and Continental have reported operating profits for the first quarter.
Even if oil prices rise farther, US Airways will likely be able to compensate by hiking fares, McAdoo said. Fare increases likely won't hurt demand much, as it takes only a 3 percent fare increase to offset a $7 increase in crude oil, McAdoo said.
The analyst also wrote that he is "pleasantly surprised" with the lack of major problems as management merges US Airways' primarily East Coast network with America West's West Coast routes.
Analyst upgrades LCC stock
Monday April 24, 2:26 pm ET
Analyst Upgrade Boosts US Airways Stock, Airline Stocks Take Off
NEW YORK (AP) -- US Airways Group Inc. stock rose $3.52, or 9.3 percent, to a new 52-week high of $41.25 in afternoon trading Monday, after an analyst upgraded the company on predictions of strong revenue growth.
ADVERTISEMENT
Bob McAdoo, an analyst with Prudential Equity Group LLC, wrote in a research report that he expects US Airways to make $6.45 profit per share this year, up from his previous estimate of 73 cents per share, excluding some one-time costs. McAdoo upgraded US Airways to "Overweight" from "Neutral Weight" and boosted his price target for the stock to $48 from $40.
The stock jumped $3.37 Monday afternoon to $41.10 on the New York Stock Exchange. It began trading in September after US Airways left Chapter 11 bankruptcy protection. Its previous high was $40.75.
The stock led a strong afternoon for airlines, with Continental Airlines Inc. rising $1.77, or 7.4 percent, to $25.69 and American Airlines owner AMR Corp. rose $1.28, or 5.7 percent, to $23.74.
McAdoo predicts a first-quarter profit of 10 cents per share for US Airways, versus previously forecasting $1.73 loss, excluding costs related to its merger with America West Holdings Corp. Analysts, on average, are expecting a loss of 48 cents per share, according to a Thomson Financial poll.
McAdoo said US Airways' lower costs and improved revenue will drive the improvement, even in the face of high oil prices.
A number of airlines have posted improved revenue numbers this quarter, as fare increases designed to offset higher fuel prices kick in. Both AMR and Continental have reported operating profits for the first quarter.
Even if oil prices rise farther, US Airways will likely be able to compensate by hiking fares, McAdoo said. Fare increases likely won't hurt demand much, as it takes only a 3 percent fare increase to offset a $7 increase in crude oil, McAdoo said.
The analyst also wrote that he is "pleasantly surprised" with the lack of major problems as management merges US Airways' primarily East Coast network with America West's West Coast routes.
Analyst upgrades LCC stock
