United Continental (NYSE: UAL) as an airline company has "a lot of untapped potential," according to Wolfe Research's Hunter Keay.

Keay said the company now has the "best board in the industry." He rates the company with a target price significantly more than the current trading price of nearly $40.70, and cited the company's network as a another positive driving his assessment.

"There's a gradual turnaround story occurring there," Keay said during an interview on CNBC's " Power Lunch " Wednesday. "United went from having the worst board in the industry to having the best board in the industry within the last three months."

U.S. airline stocks are down this year, even before the Brexit, because they have not been able to regain their pricing power, according to Keay, who serves as a managing director at Wolfe Research.

"Airlines have been buying volume," Keay said. "It's not about volume, it's about price."

American airline shares did see a bounce Wednesday after falling steeply in the aftermath of the U.K.'s vote to leave the EU, with American Airlines (NASDAQ: AAL) up more than 4.1 percent and Delta (NYSE: DAL) up nearly 4.3 percent. However, Keay said that any rise in ticket sales in the U.S. spurred by the weakening of sterling and the euro would be offset by losses across the Atlantic.

Keay said a "weaker US dollar is better than a stronger US dollar."

More From CNBC

• Top News and Analysis
  

• Latest News Video
  

• Personal Finance