Barron’s carries a piece recommending investment in major US airlines. The argument is that
- interest rate hikes mean that the economy will be strong and airlines will benefit, and
- record high stock prices in the sector somehow mean those prices will rise further
These arguments aren’t enough to get me there but I don’t spend my day analyzing individual companies and their stock price movements so I don’t have an opinion about the right price target for a stock.
Besides there’s also research suggesting you’d make more money betting against analyst price targets than following them.
What I find interesting is that the piece recommends all of Delta, American, United, JetBlue, Southwest, and Alaska. However I noticed the article from a link in the airline industry lobbyist Airlines For America’s daily email. Delta pulled out of A4A since they disagreed with the group on issues like funding of the Export-Import Bank and since the group’s members are split on the Gulf Airlines A4A isn’t at war with Emirates, Etihad, and Qatar.
So the email highlights the buy recommendation… without Delta. Petty and doesn’t do wonders for the group’s reputation for delivering unvarnished facts.
If Delta isn’t going to pay its $5 million annual dues, the group is going to whitewash the airline from existence. War is Peace, Freedom is Slavery, All Airlines But The One That Shall Not Be Named Are Great Investments.