United Airlines price target raised to $138 from $127 at TD Cowen

Investing.com - TD Cowen has raised its price target on United Airlines (NASDAQ:UAL) to $138.00 from $127.00 while maintaining a Buy rating on the stock. Currently trading at $100.10, the stock has significant upside potential according to InvestingPro data, which shows analyst targets ranging from $62 to $156, with a strong consensus recommendation of 1.41 (Buy).

The price target adjustment follows United Airlines’ third-quarter 2025 results, fourth-quarter 2025 guidance, and management’s commentary on the company’s long-term outlook. The company has demonstrated strong financial performance, with revenue reaching $58.37 billion and an impressive EBITDA of $8.08 billion in the last twelve months. InvestingPro analysis shows the company maintains a "GREAT" overall financial health score of 3.17 out of 5.

TD Cowen noted that as the post-COVID industry divergence stabilizes, United Airlines appears positioned to benefit from its UnitedNext strategy, with management projecting one percentage point of annual margin expansion through the end of the decade.

The firm’s updated financial model includes one percentage point margin expansion in 2026 and 0.5 percentage point in 2027, though analysts indicated there could be potential upside to these projections.

The price target increase reflects TD Cowen’s confidence in United Airlines’ strategic direction as the carrier implements various elements of its long-term growth plan.

In other recent news, United Airlines reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $2.78 compared to the projected $2.67. However, the airline fell short of revenue forecasts, posting $15.2 billion against the anticipated $15.33 billion. This discrepancy between EPS and revenue led to a notable drop in United’s stock price despite the earnings beat. Additionally, Morgan Stanley raised its price target for United Airlines to $140, citing a clear path to EPS exceeding $15 as a key factor. In contrast, UBS lowered its price target to $128 due to concerns over "above normal growth" in cost per available seat mile excluding fuel expected in 2026. United Airlines’ CEO, Scott Kirby, also expressed concerns about the ongoing government shutdown, which could impact airline bookings and flight operations. These developments reflect the complex environment United Airlines is navigating, with differing analyst perspectives and external challenges.

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