United Airlines price target raised to $135 from $125 at Redburn Atlantic

Redburn Atlantic analyst James Goodall raised the firm’s price target on United Airlines (UAL) to $135 from $125 and keeps a Buy rating on the shares. The U.S. airline industry is entering a “Goldilocks period” as substantial constraints on aircraft supply should result in capacity discipline being forced upon the industry in the medium to long term, the analyst tells investors in a research note. The firm says that when coupled with strong demand, particularly for international and premium, as well as growing high-margin revenue streams, it sees a pathway for margin expansion and “robust” free cash flow generation for the U.S. network airlines. As such, it upgraded American Airlines to Buy and maintains Buy rating on Delta Air Lines and United Airlines.