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Investing.com - UBS has reiterated its Buy rating and $131.00 price target on United Airlines (NASDAQ:UAL), currently trading at $101.55, despite the airline reporting mixed third-quarter results. According to InvestingPro data, six analysts have recently revised their earnings estimates upward for the upcoming period, with analyst targets ranging from $43 to $149.
The carrier’s third-quarter revenue available seat mile (RASM) declined 4.3%, falling short of UBS’s estimate of -3.6% and consensus expectations of -2.9%. United’s revenue growth reached 2.6%, below the consensus forecast of 3.3%. The company maintains strong fundamentals with trailing twelve-month revenue of $58 billion and an EBITDA of $8.3 billion. Get deeper insights into United’s financial health with a comprehensive Pro Research Report, available exclusively on InvestingPro.
UBS believes Newark Liberty International Airport operations likely created at least a 1% drag on United’s third-quarter RASM performance, contributing to the revenue shortfall.
Despite these challenges, United Airlines demonstrated better-than-expected cost management during the quarter, which partially offset the revenue disappointment.
UBS maintains its positive outlook on United Airlines based on the carrier’s fourth-quarter guidance, which suggests strong revenue acceleration despite difficult year-over-year comparisons, indicating robust demand from United’s customer base heading into 2026. The market’s confidence is reflected in the stock’s impressive 55% surge over the past six months, though InvestingPro analysis suggests the stock may be currently trading above its Fair Value.
In other recent news, United Airlines has received positive analyst ratings, with TD Cowen reiterating its Buy rating and setting a price target of $127.00. Similarly, Bernstein SocGen Group maintained an Outperform rating for United Airlines, highlighting the company’s "solid" results with a price target of $121.00. These developments come in the wake of United’s fourth quarter 2025 guidance, which has bolstered analyst confidence. Meanwhile, the ongoing U.S. federal government shutdown has not significantly impacted airline operations, despite concerns about air traffic control staffing. Although some airports, like Hollywood Burbank Airport, have experienced delays, there have been no widespread disruptions. Transportation Secretary Sean Duffy noted a slight increase in sick calls among air traffic controllers, which could potentially lead to delays. Additionally, the Essential Air Service program, which aids flights to small and rural communities, is at risk of losing funding if the shutdown continues, potentially affecting over 170 communities.
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