United Airlines stock price target raised to $103 from $92 at CFRA

Investing.com - CFRA raised its price target on United Airlines (NASDAQ:UAL) to $103.00 from $92.00 on Friday, while maintaining a Buy rating on the stock. The airline, currently trading at $92.11 with a market capitalization of $30.12 billion, maintains an attractive P/E ratio of 9.1x, according to InvestingPro data.

The research firm cited United’s resilient consumer base, well-entrenched premium products, and fleet flexibility as factors that should help the airline outperform competitors. CFRA’s new price target represents a 10.25x multiple on its 2025 earnings per share estimate. This outlook aligns with the company’s strong performance, having delivered a remarkable 96.6% return over the past year.

CFRA slightly lowered its 2025 EPS forecast to $10.09 from $10.22, while raising its 2026 EPS view to $12.35 from $12.30. The firm described United Airlines as a "compelling investment opportunity" with multiple catalysts aligning, including a demand inflection.

The airline is expected to benefit from industry capacity cuts, while its diversified revenue portfolio and new aircraft configurations position it to capture higher-margin demand. CFRA also noted that Newark Airport has emerged from operational challenges.

United’s fortress balance sheet and projected free cash flow exceeding $2 billion, combined with what CFRA considers conservative EPS guidance of $9-$11, position the carrier as "structurally advantaged" with brand loyalty and targeting double-digit margins. InvestingPro analysis reveals the company generated $4.04 billion in free cash flow, with 11 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.

In other recent news, United Airlines reported second-quarter earnings per share of $3.87, surpassing several analysts’ estimates. Despite revenue growth of 1.7% year-over-year, the results came in below expectations from Freedom Broker and consensus estimates. United Airlines has been managing international pricing effectively, even as domestic revenue experienced a slight decline. The airline’s operating margin remained robust, aided by lower fuel costs and improved fuel efficiency. Evercore ISI raised its price target for United Airlines to $105.00, citing better-than-expected non-fuel unit costs and improved booking activity. UBS maintained its Buy rating with a $103.00 price target, noting a well-controlled cost performance. Citi also reiterated its Buy rating with a $106.00 price target, highlighting the airline’s revised full-year guidance. These developments reflect a generally positive outlook from analysts, with expectations for continued financial performance improvements.

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