BofA Securities maintains Buy rating on United Airlines stock

Investing.com - BofA Securities has reiterated its Buy rating and $90.00 price target on United Airlines (NASDAQ:UAL), a $28.9 billion market cap passenger airline with a "GREAT" financial health score according to InvestingPro, following the airline’s second-quarter earnings report.

United Airlines reported earnings per share of $3.87 for the second quarter of 2025, exceeding both BofA’s estimate of $3.77 and the Street’s consensus of $3.84. The result also came in above the midpoint of the company’s previously guided range of $3.25-4.25. The airline’s strong performance is reflected in its attractive valuation metrics, trading at a P/E ratio of just 7.95x with a gross profit margin of 34.9%.

The airline achieved these results despite facing approximately $0.50 per share in negative impacts from Newark disruptions and canceled Tel Aviv flights due to Middle East tensions. BofA highlighted that United’s premium cabin exposure helped drive results and continues to differentiate the carrier from most competitors. InvestingPro analysis reveals 13 additional key insights about UAL’s performance and outlook, available exclusively to subscribers.

BofA noted that United’s outlook for third-quarter and full-year 2025 earnings aligned with the firm’s expectations. The investment bank believes the quarterly results demonstrate United’s conservative approach to guidance and the strength of its business model.

The analyst maintained the Buy rating ahead of United Airlines’ earnings call scheduled for 10:30 a.m. ET on the day of the announcement.

In other recent news, United Airlines reported second-quarter earnings per share of $3.90, aligning with its guidance range of $3.25 to $4.25. Jefferies raised its price target for United Airlines from $80 to $100, maintaining a Buy rating on the stock. The firm, however, projected third-quarter earnings per share of $2.55, which is approximately 10% below consensus estimates of $2.84, due to challenges at Newark Airport. United Airlines also plans to invest in JetZero, a U.S. aircraft startup, with a conditional order for up to 100 fuel-efficient airplanes and options for another 100. JetZero intends to invest $4.7 billion over a decade in North Carolina to build a production facility and headquarters, creating over 14,000 jobs by 2036. Additionally, United Airlines, alongside Delta Air Lines (NYSE:DAL), has suspended flights to Tel Aviv amid the evolving security situation in the region. Democratic Senator Richard Blumenthal has raised concerns about the proposed partnership between United Airlines and JetBlue Airways (NASDAQ:JBLU), questioning its potential impact on competition and pricing. Meanwhile, French aviation authorities have requested airlines to reduce flights at Paris airports due to an upcoming air traffic controller strike.

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