Zacks Investment Research upgraded shares of United Continental Holdings, Inc. (UAL) (UAL) from UNDERPERFORM to NEUTRAL on January 22, 2014, with a target price of $50.00.
We upgrade our recommendation on United Continental from Underperform to Neutral. The company plans to cut costs by spending less on fuel and optimizing distribution channels, and there after enhance productivity. United Continental is also making solid progress in expanding its on-board products and services in both domestic and international fleet apart from expanding its global route network through the introduction of non-stop flights. However, the company's third quarter performance missed our expectations on both fronts. A weak cargo market along with subdued performance in the Asia-Pacific remains a risk. Further, capacity additions by competitors in China and the merger of U.S. Airways and American Airlines could affect the company's performance in the future.
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