Citi reiterates Buy rating on United Airlines stock as Q2 results beat estimates

Investing.com - Citi has reiterated its Buy rating and $106.00 price target on United Airlines (NASDAQ:UAL), currently trading at $88.47 with a market capitalization of $28.89 billion, following the carrier’s second-quarter 2025 earnings report. According to InvestingPro data, the company maintains a "GREAT" overall financial health score.

United Airlines reported adjusted earnings per share of $3.87 for the second quarter of 2025, exceeding the consensus estimate of $3.81. The company’s strong performance is reflected in its P/E ratio of 7.95 and impressive last twelve months revenue of $57.74 billion.

The airline revised its full-year guidance with a midpoint modestly above consensus and solidly above its previous recessionary outlook, though slightly below its earlier base-case projection due to short-term headwinds at Newark Airport.

United Airlines indicated it expects industry supply to inflect downward beginning in mid-August, a trend similar to what drove the robust share price rally in the fourth quarter of 2024.

Citi maintained its positive stance on the airline, keeping both its Buy rating and $106.00 price target unchanged following the earnings report.

In other recent news, United Airlines reported second-quarter earnings per share of $3.87, surpassing both the FactSet consensus estimate and Goldman Sachs’ projections. The airline’s earnings were primarily boosted by lower-than-expected non-fuel operating costs, although revenue fell short of expectations. United has set guidance for the September quarter EPS between $2.25 and $2.75, slightly below consensus forecasts but aligning with Goldman Sachs’ estimates. The airline’s full-year 2025 EPS outlook has been updated to a range of $9.00 to $11.00, with the midpoint matching consensus estimates. Goldman Sachs and BofA Securities have both reiterated their Buy ratings on United Airlines stock, with price targets of $92 and $90, respectively.

Additionally, United Airlines faces scrutiny over its proposed "Blue Sky" partnership with JetBlue Airways (NASDAQ:JBLU), as Senator Richard Blumenthal expressed concerns about potential negative impacts on competition. In operational news, United Airlines, along with Delta Air Lines (NYSE:DAL), has suspended flights to Tel Aviv amid regional tensions following Israel’s actions against Iran. Furthermore, French aviation authorities have requested airlines, including United, to reduce flights at several airports due to an upcoming air traffic controller strike. These developments reflect a mix of operational challenges and strategic opportunities for United Airlines.

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