Price Targets for 9 Major Airlines
Posted By InvestorPlace On August 9, 2010
Some in the airline industry are faring well, while still others have opportunities to grow in the year ahead – which comes with purchasing opportunities for buyers.
Here are nine major airline companies and their current average price targets.
AMR Corp. (AMR): The commercial aviation business and airline holding company based in Fort Worth, Texas, formed in 1982, as part of American Airlines’ reorganization. AMR owns TWA Airlines (formerly Trans World Airlines) and American Eagle Airlines. According to Thomson/First Call, AMR Corp. (NYSE: AMR [1]) has an average Wall Street price target of about $10, just +36% above current valuations for the stock. And it seems to be on the march back up again. AMR is down -7.24% year-to-date against the +2.3% gain with the Dow and slight +0.7% gain for the S&P 500.
US Airways (LCC): With a fleet of 345, this Tempe, Arizona-based company connects 200 destinations in North America, Central and South America, the Caribbean, Europe and the Middle East. It’s a Star Alliance junior partner, but some analysts are hinting at a possible change. Thomson/First Call lists the price target of the stock at about $14, about +46% above the average price target of the stock. US Airways Group (NYSE: LLC [3]) is also soaring at +100% year-to-date, with minor dips on the way up, compared to the +2.3% gain with the Dow and slight +0.7% gain for the S&P 500.
Delta (DAL): Headquartered in Atlanta and the world’s largest airline by fleet size of some 740, Delta operates an extensive domestic and international network. Delta (NYSE: DAL [4]) and its subsidiaries fly to 247 destinations in 66 countries across six continents. The company has the largest fleets of Boeing 757 and Boeing 767 and is the largest U.S. operator of the Airbus A330 aircraft of any airline. Delta is listed by Thomson/First Call as a having an average price target of $16.75, only about +28% over the value of the stock. Still, it’s trending upward again at +4.5% year-to-date, compared to market gains for the Dow and S&P.
UAL Corp. (UAUA): Incorporated in Delaware with headquarters in Chicago, UAL owns and operates United Air Lines, one of the world’s largest air carriers with a fleet of 360. UAL (NASDAQ: UAUA [5]) has an average price target of $35, according to Thomson/First Call, which is about 52% over current share valuation for the stock. UAL stock is coming in at +77.8% with the +2.3% gain with the Dow and slight +0.7% gain for the S&P 500.
Southwest (LUV): An American low-cost airline, Southwest is the largest airline in the world by number of passengers carried per year. Southwest is also the third-largest passenger fleet of aircraft among all of the world’s commercial airlines. Southwest (NYSE: LUV [6]) has an average price target of $15, according to Thomson/First Call. That’s about +25% above of its current stock valuation of $12.10. Like some others, LUV stock is following the market, about +5.95% against the +2.3% gain with the Dow and +0.7% gain for the S&P 500.
JetBlue (JBLU): Another noted American low-cost airline, JetBlue was one of the few U.S. airlines that made a profit during the sharp downturn in airline travel following the September 11, 2001, attacks. As of July 2010, the JetBlue Airways fleet included 151 aircraft. JetBlue (NASDAQ: JBLU [7]) is listed as having an average price target of about $8 a share, according to Thomson/First Call, about 25% above the current $6.42 pricing for the stock. JBLUE is at +17.6% compared to the +2.3% gain with the Dow and slight +0.5% gain for the NASDAQ.
Continental (CAL): Based in downtown Houston, Texas, CAL is the fourth-largest airline in the country, based on revenue passenger miles. With a fleet of 340, principal operations are from its three hubs at Newark Liberty International Airport, George Bush Intercontinental Airport, and Cleveland Hopkins International Airport. According to Thomson/First Call, Continental has an average Wall Street price target of about $34, some +39% above current pricing. Continental (NYSE: CAL [8]) is riding high for the moment, standing at +35.5% over last year, compared against the +2.3% gain with the Dow and slight +0.7% gain for the S&P 500.
Alaska Air (ALK): The airline traces its roots to McGee Airways, which flew its inaugural service between Anchorage and Bristol Bay in 1932 with a Stinson single-engine, three-passenger aircraft. Now with a fleet of 121, it’s based in the Seattle suburb of SeaTac, Washington. Wall Street notes an average price target of $67, according to Thomson/First Call, some +24% above the $53.90 stock price. AlaskAir (NYSE: ALK [9]) notably is +53% year-to-date, bounding high above the +2.3% gain with the Dow and slight +0.7% gain for the S&P 500.
AirTran (AAI): An American low-cost airline and subsidiary of AirTran Holdings, AirTran (NYSE: AAI [2]) operates more than 1,000 daily flights, primarily in the eastern and Midwestern United States with its 138 aircraft. Analysts note an average price target of $8, according to Thomson/First Call, some +71% above the $4.67 stock price. Still, the company has had somewhat erratic pricing this year, bouncing up and down, currently at -10.5% year-to-date against the Dow and S&P 500. |
