United Airlines stock rating reiterated at Outperform by Evercore ISI

Investing.com - Evercore ISI has reiterated an Outperform rating on United Airlines (NASDAQ:UAL) with a price target of $100.00, according to a research note released Thursday. Currently trading at $88.47, UAL maintains strong financial health with an overall score of "GREAT" according to InvestingPro metrics.

The airline reported second-quarter earnings per share ahead of expectations, while guiding third-quarter EPS to a midpoint approximately 5% below Street estimates. Full-year guidance remained roughly in line with consensus. The company’s trailing twelve-month EPS stands at $10.95, resulting in an attractive P/E ratio of 7.95x.

United Airlines has observed increased booking activity over the past two weeks across all future travel periods, including a notable uptick in business travel reservations. The company attributes this improvement to reduced uncertainty in the market. With revenue of $57.74 billion and a healthy free cash flow yield of 17%, UAL shows strong operational performance. For deeper insights into UAL’s valuation and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

The carrier specifically noted a demand acceleration of 6 percentage points in the first half of July compared to second-quarter levels. United also believes it has overcome perception headwinds related to its Newark hub operations.

Evercore ISI indicated that this recent improvement in booking trends does not appear to be fully incorporated into United’s second-half assumptions. The airline has scheduled its earnings call for Friday at 10:30 a.m. ET.

In other recent news, United Airlines reported adjusted earnings per share of $3.87 for the second quarter of 2025, surpassing consensus estimates of $3.81. The airline’s revised full-year guidance shows a midpoint slightly above consensus, despite short-term challenges at Newark Airport. Analysts at Citi, Goldman Sachs, and BofA Securities reiterated their Buy ratings on United Airlines, with price targets set at $106, $92, and $90, respectively. These firms noted that United’s earnings beat was driven by lower-than-expected non-fuel operating costs, though revenue was slightly below expectations. The airline’s outlook for the third quarter and full year aligns with analyst expectations, despite operational issues at Newark impacting margins. Meanwhile, Democratic Senator Richard Blumenthal criticized United Airlines’ proposed partnership with JetBlue Airways (NASDAQ:JBLU), expressing concerns over potential harm to competition. Additionally, French aviation authorities have asked airlines, including United, to reduce flights to Paris airports by 25% due to an upcoming air traffic controller strike. This reduction is part of broader flight cuts across several French airports to mitigate expected disruptions.

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