United Airlines price target raised to $100 from $80 at Jefferies

Jefferies raised its price target on United Airlines (NASDAQ:UAL) to $100 from $80 on Thursday, while maintaining a Buy rating on the stock. According to InvestingPro data, UAL currently trades at an attractive P/E ratio of 7, with analyst targets ranging from $42 to $130.

The research firm noted that United’s second-quarter earnings per share of $3.90 aligns with the company’s previous guidance range of $3.25-$4.25, though Newark Airport booking challenges and operational impacts prevented the airline from reaching the high end of that range. The airline maintains a "GREAT" overall financial health score on InvestingPro, with particularly strong metrics in relative value and growth.

Jefferies projects third-quarter earnings per share of $2.55, approximately 10% below consensus estimates of $2.84, citing continued challenges at Newark Airport, which represents 20% of United’s available seat miles, and a strategy of trading yields for load factors during peak summer travel.

The firm emphasized that close-in bookings for the third quarter and performance in the fourth quarter will be crucial for United’s full-year results, particularly to determine if currently stable demand accelerates.

Jefferies forecasts 2025 earnings per share of $10 for United Airlines, which falls below the company’s original guidance range of $11.50-$13.50.

In other recent news, United Airlines has partnered with Spotify (NYSE:SPOT) to enhance its in-flight entertainment offerings. Passengers on over 680 United aircraft can now enjoy a range of Spotify’s video and audio podcasts, audiobooks, and music playlists for free. This marks the first time Spotify provides such content on an airline, with future plans for integration with personal devices starting in 2026. Meanwhile, JetBlue Airways (NASDAQ:JBLU) and United Airlines have announced a collaborative plan, "Blue Sky," pending regulatory approval, which will allow travelers to book flights on either airline’s website and earn points interchangeably. This collaboration will also include United gaining access to slots at JFK Airport for seven daily round-trip flights beginning in 2027. Additionally, JetBlue and United will swap eight flight schedules at Newark Liberty International Airport. United Airlines also anticipates slightly lower ticket prices for the upcoming spring and summer seasons but expects high demand, especially for destinations like Japan and southern Europe. The airline is planning to expand its presence at JFK Airport despite current runway constraints.

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