Avondale Slashes Price Targets For Legacy US Airlines
Equity research firm Avondale Partners lowered the price targets for airline
stocks under its coverage on Tuesday, saying the weaker economy will restrict
profit growth through 2010.
"Lacking the earnings that were once anticipated with the major capacity
reductions that were implemented, airline stocks will now likely trade parallel
with expectations of economic strength," the firm said.
Avondale cut its price target for American parent AMR Corp. (AMR) to $12 from
$32, Continental Airlines Inc. (CAL) to $22 from $49, Delta Air Lines Inc. (DAL)
to $13 from $20, United parent UAL Corp. (UAUA) to $13 from $50, and US Airways
Group (LCC) to $10 from $32.
-Christopher Hinton, 415-439-6400; AskNewswires@dowjones.com
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