NEW YORK (TheStreet) -- Shares of United Continental Holdings (UAL) are surging, up 5.5% to $62.55 in late morning trading Thursday, after analysts at JPMorgan Chase lifted airline stocks today on a valuation call, saying the stocks appear to be quite cheap.
The firm raised its price target on shares of United Continental to $95.50 from $74.50.
JPMorgan Chase believes the market is "undervaluing the positive effect that the decline in oil prices will have on the companies' finances."
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Analysts at the firm noted that airlines stocks including United Continental, are cheaper today than at the end of the summer despite the rise domestic fares, trimmed transatlantic capacity, and a decline in fuel costs.
Separately, TheStreet Ratings team rates UNITED CONTINENTAL HLDGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED CONTINENTAL HLDGS INC (UAL) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."