S&P Capital IQ Reiterates its BUY Rating on US Airways

October 28 00:00 2011

NEW YORK, October 28 (RainbowNewsLine.com) – Analyst Jim Corridore of S&P Capital IQ reiterates his BUY rating on the shares of US Airways (NYSE: LCC), while adjusting his estimates for the company. The target price is set to $10.

Analyst Jim Corridore, in a research note published yesterday mentions that the company reported its Q3 EPS short of the estimates and ahead of the consensus. Although the revenues were strong, fuel expenses were ahead of the expectations, the analyst says. Demand for low cost carriers is not diminishing and the capacity is expected rise modestly in 2012, the analyst says. The EPS estimate for 2011 has been reduced from $0.45 to $0.24 on higher fuel costs, and the EPS estimate for 2012 has been raised from $1.25 to $1.45 on positive revenue outlook.