UPDATE 1-RESEARCH ALERT-Lehman ups target on 9 US airlines

jueves 28 de agosto de 2008 16:17 CEST

 (Recasts; adds details)
 Aug 28 (Reuters) - Lehman Brothers raised its price target
on shares of nine U.S airlines, including Delta Air Lines
(DAL.N: Cotización), Northwest Airlines NWA.N, UAL Corp UAUA.O and
JetBlue Airways (JBLU.O: Cotización), and said a recent rally of the shares
does not sufficiently reflect the magnitude of change developed
in the combination of lower energy prices and a favorable
capacity outlook.
 "We see substantial upside potential, even from current
levels," analyst Gary Chase said in a note to clients.
 Chase, who expects the airline industry to be profitable
during 2010, also believes capacity and liquidity issues are
both better than market anticipations.
 The analyst also narrowed his 2008 loss estimates on nine
airline stocks, citing lower fuel prices combined with a
better-than-expected capacity outlook for the industry.
 He raised his 2008 profit outlook on Southwest Airlines
(LUV.N: Cotización).
 The following are the price target and 2008 estimate
changes by Lehman Brothers on the U.S. airline stocks:
 (in $)                               Price Target         
 FY Estimates
 Company Name                     Current    Previous    
Current    Previous
 Air Tran Holdings AAI.N         4.50       4.00        
-1.23      -2.13
 Alaska Air Group (ALK.N: Cotización)         28.00      17.00        
-0.13      -3.28
 AMR Corp AMR.N                 22.00       7.50        
-5.70     -10.88
 Continental Airlines (CAL.N: Cotización)     22.00       9.50        
-2.04      -7.35
 Delta Airlines (DAL.N: Cotización)           18.00       8.50        
-1.05      -3.25
 JetBlue Airways (JBLU.O: Cotización)          9.00       5.50        
-0.27      -0.72
 Northwest Airlines NWA.N       19.00      10.00        
-0.99      -3.74
 UAL Corp UAUA.O                26.00      16.50        
-6.76     -18.25
 US Airways Group LCC.N         12.00       4.00        
-6.45     -12.70
 Southwest Airlines (LUV.N: Cotización)      Unchanged at 11.00        
0.53       0.15
 (Reporting by Arup Roychoudhury in Bangalore; Editing by
Pratish Narayanan)