Monday one analyst predicted there is up to 50% upside in a select group of steel stocks. On Tuesday, a different analyst is looking for big upside in airline stocks.
Analysts at Atlantic initiated coverage on a number of airline stocks, including a new overweight rating on Delta Air Lines (DAL) and United Continental (UAL) . The analyst assigned a price target of $68 to Delta, implying upside of roughly 30%, and a price target of $100 on United, implying upside of more than 28%.
Both stocks are higher in premarket trading, with Delta shares up 1.26%, to $53.17, and United shares up 1.28%, to $79.64.
The Atlantic analysts also assigned Southwest Airlines (LUV) with a neutral rating, but their $71 price target implies upside of about 16%. American Airlines (AAL) was the analyst's lone underweight assignment. However, their price target of $56 still suggests that approximately 13% upside could exist.
Ironically though, each of these stocks have something in common: Warren Buffett. That's right. Buffett, who notoriously avoided stocks in the airline industry, is long each of these stocks at Berkshire Hathaway (BRK.A) (BRK.B) .
Many investors have warmed up to the airline industry thanks to more efficient flight routes and profitability, low valuations and falling fuel prices -- the airlines' largest input cost.
More Noteworthy Ratings Changes
EQT Corp. (EQT) was upgraded to outperform and assigned a $70 price target at BMO.
Goodyear (GT) was upgraded to buy at Jefferies.
Marvell Tech (MRVL) was upgraded to overweight and assigned a $22 price target at Pacific Crest.
Nvidia (NVDA) was upgraded to sector weight at Pacific Crest.
Rice Energy (RICE) was downgraded to sector perform and assigned a $25 price target at RBC.
Rice Midstream Partners (RMP) was downgraded to sector perform and assigned a $21 price target at RBC.