S&P Lifts Continental Airlines to Buy

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Sure, take my money and buy your stock!


S&P Lifts Continental Airlines to Buy
Analyst Jim Corridore says a positive vote on labor concessions could move the carrier's share price. Plus: Opinions on HP, Disney, and more 

Continental Airlines (CAL ): Upgrades to 5 STARS (strong buy) from 3 STARS (hold)
Analyst: Jim Corridore

Continental's unions finish voting today on concessions, and we think that there is a good chance the vote will go the company's way. Union leaders have endorsed the give-backs, Continental has done a full-court press to inform employees of the necessity, and we think the company has a good relationship with its unions. We believe a positive vote would move the share price. In addition, unit revenues seem to be improving modestly and oil supply levels have us thinking that upward pressure on fuel costs may lessen. Our 12-month target price is $14, up from $10, 11 times our 2006 EPS estimate of $1.25.

Roger
EWROPS

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