Texas isn’t the only state backing the merger of AMR Corp. (AAMRQ), the parent of American Airlines, and US Airways (LCC). Oklahoma has now voiced its support for the combination.
Agence France-Presse/Getty Images Tulsa World reports:
Oklahoma Attorney General Scott Pruitt is continuing to press for the merger of American Airlines and US Airways, telling a court in Washington, D.C., that he intends to file for “friend of the court” status for the upcoming trial in an antitrust lawsuit brought by the Justice Department.
Pruitt’s announcement Wednesday came the same day as mayors of seven cities, all with American and US Airways hubs, sent a letter to U.S. Attorney General Eric Holder asking him to withdraw the lawsuit.
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Michael Linenberg also raised US Airways to Buy from Hold. Analyst Michael Linenberg and team explain:
We are raising our rating on US Airways’s shares from Hold to Buy based on an improved fundamental outlook that, in our opinion, transcends the potential uncertainty surrounding the company’s proposed merger with American which has been blocked by the DOJ. The improvement observed in the Sep Q (e.g. pretax margin expanded 4 points to 9.5%) combined with material revisions to our 2013 and 2014 EPS estimates underlie a revised 12 month price target of $30 implying upside of 40% for LCC shares. We believe that math is too compelling to disregard despite regulatory uncertainty that may not be resolved until early 2014.
Shares of AMR Corp. have gained 9.7% to $6.91–just 3.4% from its 52-week high–while US Airways has risen 5.5% to $22.57. Southwest Airlines (LUV) has advanced 3.4% to $16.96, Delta Air Lines (DAL) has jumped 2.6% to $26.27 and JetBlue Airways (JBLU) is up 2.9% at $12.31.
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