Why Do We Think United Continental Is Worth $68 Per Share?
United Continental, similar to its competitors, has been flying high on the ongoing oil slump. Its EBITDA margins have improved significantly due to the lower fuel costs over the last 20 months. However, the currency fluctuations throughout 2015 created pressure on the airline’s top line growth. Also, the frequent changes in the airline’s top management caused anxiety among investors. Considering all these factors, we expect the legacy carrier to do well in the near term, as the outlook for commodity markets remains weak. Further, the network carrier aims to focus its capacity in high-margin and unexplored markets, which is likely to boost its revenue, despite currency headwinds in the near term. Thus, we have a price estimate of $68 per share for United Continental, which is roughly 19% ahead of its current market price.
Have more questions about United Continental (NYSE:UAL)? See the links below:
- What Drove United’s Revenue And EBITDA Growth Over The Last Five Years?
- How Has United’s Revenue And EBITDA Composition Changed Over The Last Five Years?
- What Is United Continental’s Revenue And EBITDA Breakdown?
- How Has United Continental Utilized Its Cash Flows Over The Last Three Years?
- How Have Plummeting Crude Oil Prices Impacted United Continental’s Operating Margin?
- Spurred By Stellar Earnings, Can United Airlines Holdings Stock Extend Its Run?
- United Airlines Holdings Stock Looks Set For A Come Back
- Down 13% Last Week, Can United Airlines Holdings Stock Bounce Back?
- Is United Airlines Stock On The Move?
- Company Of The Day: United Airlines
- Will United Airlines Stock Rise After Recent Correction?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for United Continental
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