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Morgan Stanley raises United Airlines stock price target to $140 on EPS growth outlook

Published 16/10/2025, 21:42
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UAL
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Investing.com - Morgan Stanley has raised its price target on United Airlines (NASDAQ:UAL) to $140.00 from $130.00 while maintaining an Overweight rating on the stock. Currently trading at $98.17, UAL has demonstrated strong momentum with a 55% surge over the past six months. According to InvestingPro data, the stock maintains a "GREAT" financial health score, trading at an attractive P/E ratio of 9.7x.

The price target increase comes as Morgan Stanley sees a clear path to earnings per share (EPS) exceeding $15 for the airline carrier.

The research firm noted that United Airlines’ recent conference call included substantial discussion about structural EPS growth potential, which it interpreted as a positive sign that the company feels confident enough to focus on longer-term prospects.

Morgan Stanley acknowledged that near-term commentary during the call drove significant stock volatility for United Airlines shares.

The firm expects that once market reactions stabilize, investors will refocus on United Airlines’ earnings growth trajectory that supports the higher price target.

In other recent news, United Airlines reported its third-quarter 2025 earnings, with an earnings per share (EPS) of $2.78, exceeding analysts’ expectations of $2.67. However, the company’s revenue fell short of forecasts, coming in at $15.2 billion compared to the anticipated $15.33 billion. These financial results have raised concerns among investors, despite the EPS beat. Additionally, United Airlines CEO Scott Kirby has issued a warning about the potential impact of the ongoing government shutdown on the airline industry. The shutdown, now in its third week, is exacerbating a shortage of air traffic controllers and causing occasional slowdowns in air traffic. These developments are contributing to uncertainties surrounding the company’s operations and future performance.

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