United Air shares gain for a fourth straight session on Thursday, stock upgraded to “Buy” at Goldman Sachs, price target unchanged

June 7, 2019 7:18 am

Goldman Sachs earlier this week upgraded United Continental Holdings Inc (UAL) from “Neutral” to “Buy”, as it cited a possible share price rebound during the second half of 2019.

The firm maintained its 12-month price target on the stock at $108 per share.

United Air shares closed higher for a fourth consecutive trading session on NASDAQ on Thursday. The stock went up 1.36% ($1.11) to $82.96, after touching an intraday high at $84.00, or a price level not seen since May 10th ($85.19).

Shares of United Continental Holdings Inc have retreated 0.92% so far in 2019 compared with a 13.43% gain for the benchmark index, S&P 500 (SPX).

In 2018, United Air’s stock went up 24.23%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

“Given [United]’s share price decline since we initiated in November 2018, it now has one of the highest levels of upside potential to our price target in our coverage universe,” Goldman Sachs analysts Catherine O’Brien and Joyce Koltisko wrote in a client note, cited by CNBC.

The brokerage firm noted that United Air’s stock was now fairly priced, if taking into account “the potential downside risks associated with China” and “investor concerns around its loan to Avianca.”

“…we are of the view that United is likely within 12 to 36 months of signing a new contract with improved economics with its co-brand credit card partner Chase,” O’Brien and Koltisko also wrote.

According to CNN Money, the 18 analysts, offering 12-month forecasts regarding United Air’s stock price, have a median target of $106.00, with a high estimate of $140.00 and a low estimate of $81.00. The median estimate represents a 27.77% upside compared to the closing price of $82.96 on June 6th.

The same media also reported that 12 out of 21 surveyed investment analysts had rated United Air’s stock as “Buy”, while 7 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for United Continental Holdings Inc (UAL) are presented as follows:

Central Pivot Point – $78.61
R1 – $79.83
R2 – $82.00
R3 – $83.22
R4 – $84.43

S1 – $76.44
S2 – $75.22
S3 – $73.05
S4 – $70.87

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