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Cooperman: United Continental shares to ‘double’ in the next 2 to 3 years

  • Billionaire Leon Cooperman, chairman and CEO of Omega Advisors, is a big believer in United Continental shares.
  • "I would expect the stock to probably in the next 2 to 3 years be a double," he said.

Leon Cooperman speaking at the 2017 Delivering Alpha conference in New York on Sept. 12, 2017.
David A. Grogan | CNBC
Leon Cooperman speaking at the 2017 Delivering Alpha conference in New York on Sept. 12, 2017.

Billionaire Leon Cooperman, chairman and CEO of Omega Advisors, is a big believer in one airline stock.

"We owned Delta at one time. And we decided to focus into United because we thought there is more margin expansion opportunities," he said Wednesday on CNBC's "Halftime Report." "United has a significant discount in their profitability versus the industry. So if they wind up with a big cap shrink and improving their profitability, you can have a leveraged return."

The investor noted United Continental reported earnings per share above expectations last quarter and cited its low valuation. He predicts the airline can increase its profit margins toward the industry average.

"I would expect the stock to probably in the next 2 to 3 years be a double," he said.

Cooperman founded Omega Advisors in 1991. The firm has approximately $3.8 billion in assets under management.

His firm agreed last year to a $4.9 million settlement with the Securities and Exchange Commission after allegations of insider trading. As part of the settlement, Omega Advisors admitted to no wrongdoing.