Repeat second-teamer Michael Linenberg is “the first analyst I reach out to when I want to know what is going on in the airlines,” says one loyalist. The Deutsche Bank Securities researcher, who monitors 20 companies, presciently upgraded SkyWest in May 2012 from sell to buy, at $8.61, on rising operating income and reduced costs. Through August 2013 shares of the St. George, Utah–based regional passenger airline flew 49.7 percent, to $12.89. In December he pegged Chicago-headquartered United Continental Holdings as a top pick for the year ahead, citing the large carrier’s rising profits, free cash flow and deleveraging balance sheet. Then trading at $23.96, the stock had jumped to $28.46 by the end of August, gaining 18.8 percent and trumping the sector by 19.2 percentage points. It remains a Linenberg favorite. “Mike had the right call in being overweight,” observes one wealth manager. — Ben Mattlin |
The 2013 All-America Research Team: Airlines, No. 2: Michael Linenberg