Tuesday, January 11, 2011

United Continental (NYSE:UAL) Risky on Merger Integration, But Has Strong Potential

United Continental (NYSE:UAL) has some significant risk from the integration of their merger, but also, according to Soleil, has the highest potential in the sector.

Soleil said, "UAL has for us above-average risk owing to its ongoing merger integration, but also has the highest stock price return potential in the group."

They increased their full year 2011 estimate from $4.90 to $5, citing higher fuel costs and poor weather. They also boosted their 4Q10 EPS estimate by $0.06 to $0.30 and their full year 2010 from $4.10 to $4.15.

Soleil maintains a "Buy" rating on United Continental, which closed Monday at $26.20, gaining $0.25, or 0.96 percent. They raised their price target on United from $33 to $35.

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