United up another 2% as Macquarie upgrades, Bernstein hikes price target

|By:, SA News Editor

United Continental (UAL +2.2%) extends yesterday's big gain as Macquarie upgrades shares to Outperform from Neutral with a $95 price target following the company's strong Q2 earnings beat and improved full-year guidance.

UAL's upbeat quarter shows an ability to execute on initiatives and grow profits despite the rising cost of jet fuel, analyst Susan Donofrio says, adding that the company's progress in both its operational and commercial initiatives should help it close the gap in financial performance with Delta.

Bernstein's David Vernon reiterates his Outperform rating while raising his price target to $88 from $80, believing investors are becoming "more willing to bet on United's ability to unlock the value within its business (particularly with respect to other airlines)."

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