NEW YORK (TheStreet) -- United Continental (UAL) shares are up 0.51% to $55.08 in afternoon trading on Tuesday after the airline was named the best value play in the airline industry by Morgan Stanley analyst Rajeev Lalwani.
Lalwani initiated coverage on the stock with an overweight rating and $86 price target while calling the airline the best value play in the industry.
According to Lalwani, United Continental is the "most levered to the cycle given high operating leverage, while also providing the highest free cash flow per share yield in the group at ~18% our 2016e."
Other stocks mentioned positively in today's note include Delta Airlines (DAL), Alaska Airlines (ALK) and budget airline Spirit Airlines (SAVE).
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 number of 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 solid stock price performance, impressive record of earnings per share growth, notable return on equity, good cash flow from operations and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."