< The 2015 All-America Research Team
Michael Linenberg
Deutsche Bank Securities
First-place appearances: 2
Total appearances: 13
Analyst debut: 2002
Advancing from runner-up to reclaim the No. 2 position he earned in 2012 and 2013 is Deutsche Bank Securities’ Michael Linenberg. In February the 45-year-old analyst raised his rating on SkyWest from hold to buy, at $11.90, largely on a fleet overhaul. When the St. George, Utah–based regional airline’s shares reached $13.99 in July, he reiterated his position and increased his price objective from $16 to $20. In mid-September, SkyWest was trading at $17.07, up 42.7 percent since his upgrade and ahead of its peers by 48.1 percentage points. He continues to encourage investors to favor the name. Another preferred player in this space is United Continental Holdings, the Chicago-headquartered operator of major carrier United Air Lines and smaller transporters of passengers and cargo. Linenberg was skeptical on the company as recently as April, when he changed his stance from buy to hold, at $67.25. Headwinds included fuel price volatility and downward pressure on international demand from a combination of robust capacity increases at non-U.S. competitors, a strong dollar and slowing global growth, he advised. In July, however, with the stock down 15.7 percent and lagging the U.S. airlines group by 3.2 percentage points, he elevated his rating back to buy. United Continental had delivered record quarterly profits, he noted, and management had increased its share-repurchase program. Through mid-September the stock climbed to $60.31, posting a 6.4 percent rise that bested the sector by 1.7 percentage points, and the researcher projects a further rise to $72. “Mike is willing to go against the grain,” says one constituent.