Thursday July 2, 03:50 PM
Continental leads airline index after upgrade
NEW YORK, July 2 (Reuters) - Shares of Continental Airlines (NYSE: CAL - news) leapt 5 percent after an analyst lauded the company's cash position, fuel-efficient fleet and improving trends in revenue per available seat miles.
Continental (Frankfurt: A0XFTR - news) 's rally bucks a trend of declines among airlines shares in early trading.
Analyst William Greene of Morgan Stanley (NYSE: MS - news) lifted Continental to 'overweight' from 'equal weight.' 'We see this as a time to invest in shares of CAL at a discount, particularly with a longer-term time horizon,' Greene wrote.
The stock added 47 cents, or 5.1 percent, to $9.68 on the New York Stock Exchange, while the NYSE Arca Airlines Index dropped more than 2 percent. The broad S&P 500 also fell more than 2 percent.
Both Continental and Delta Air Lines, which Morgan Stanley started at an 'overweight' rating, were the leaders of the airlines index.
(Reporting by Deepa Seetharaman; Editing by Derek Caney) Keywords: CONTINENTAL/SHARES
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