Hedge fund manager sees United shares doubling because of millennial travel

Brad Gerstner, founder and CEO of Altimeter Capital, recommends United Continental due to industry consolidation.

The idea from the former PAR Capital portfolio manager was presented Monday at the Sohn Investment Conference in New York.

"The dramatic consolidation has led to … an oligopoly among the major carriers," Gerstner said. "Destructive price wars" have ended.

The investor estimates United's earnings per share could double by the year 2020 assuming profit margins increase and the airline gains some market share. As a result, Gerstner predicts the stock will more than double in the coming years.

"No industry has been more out of favor in the last thirty years than airlines," the investor said. "Airlines are full. Millennials travel more than their parents."

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