United and Alaska shares improve on ‘clear path to reopening’ for air travel industry

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There is a “clear path to reopening” for the air travel industry and, despite recent equity gains, airline stocks are “attractive,” analysts at Morgan Stanley said, upgrading their ratings on the company’s shares. Alaska Air Group Inc. and United Airlines Holdings Inc. Analysts, led by Ravi Shanker, improved their opinion of Alaska ALK, + 3.10% of the shares to the equivalent of buy, from hold, and raised their target price of the shares at $ 90, from $ 49. His rating on United UAL, -0.07%, was unchanged, since the sale, and the target price increased to $ 65, from $ 37.

Morgan Stanley analysts also began hedging American Airlines Group Inc. AAL, -0.91% share equivalent to sell, setting a price target of $ 20, and increased their price targets on JetBlue Airways Corp. JBLU, + 0.76% at $ 30, from $ 18; Delta Air Lines Inc. DAL, + 1.99% to $ 72, from $ 55; and Southwest Airlines Co. LUV, + 1.62% to $ 80, from $ 59. Overall, analysts said they see about 30% hike for their price targets on airlines and about 45% higher. increase in its quarterly financial estimates, thanks to a “rapid rebound in air traffic, structural cost savings and an environment conducive to jet fuel.” “They said. Most estimates for next year still don’t factor in a” quick reopen, “they said. American will rise with the tide of the return air traffic industry, but stocks are up more than 50% in so far this year, limiting their potential, analysts said. For Alaska and United, “we see more favorable relative risk rewards than before,” they said. Airline stocks are collectively up between 70% and 80%. % from the first good vaccine news in November, analysts said. That has led to some concerns that stocks have moved “too far, too fast” and a reopening trade has ended, they said. “We are not. Okay and we see the airlines as more than just a commercial reopening; in fact, we think fundamentals support the upside from here, “analysts said.