United Airlines (NASDAQ:UAL) Price Target Cut to $155.00 by Analysts at Wells Fargo & Company

Key Points

• Wells Fargo cut United Airlines’ price target from $160 to $155 while maintaining an “overweight” rating, implying approximately 50.7% upside from the reported share price.
• Analyst sentiment remains broadly positive: 16 analysts rate the stock a Buy, one rates it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average target of $156.50.
• United’s latest quarter showed strong revenue growth of 17.4% to $17.88 billion, but earnings per share of $2.54 narrowly missed expectations and declined year over year, highlighting pressure on profitability.

United Airlines (NASDAQ:UAL - Get Free Report) had its price target reduced by research analysts at Wells Fargo & Company from $160.00 to $155.00 in a research report issued on Thursday, Benzinga reports. The brokerage currently has an "overweight" rating on the transportation company's stock. Wells Fargo & Company's price objective would indicate a potential upside of 50.72% from the stock's current price.

Several other research firms also recently commented on UAL. Susquehanna dropped their target price on United Airlines from $150.00 to $130.00 and set a "positive" rating on the stock in a report on Thursday. Evercore reissued an "outperform" rating and issued a $160.00 target price on shares of United Airlines in a research note on Wednesday. Bank of America raised their price target on United Airlines from $145.00 to $150.00 and gave the company a "buy" rating in a report on Wednesday, July 1st. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of United Airlines in a research report on Thursday, October 15th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $142.00 price target on shares of United Airlines in a research report on Wednesday. Sixteen research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $156.50.

United Airlines Stock Up 1.1%

Shares of UAL stock traded up $1.17 during trading hours on Thursday, hitting $102.84. 2,346,170 shares of the company's stock traded hands, compared to its average volume of 5,707,089. The company has a quick ratio of 0.72, a current ratio of 0.78 and a debt-to-equity ratio of 1.45. The stock's fifty day simple moving average is $109.91 and its two-hundred day simple moving average is $110.71. United Airlines has a 12-month low of $84.64 and a 12-month high of $138.77. The stock has a market cap of $33.38 billion, a price-to-earnings ratio of 9.39, a PEG ratio of 1.13 and a beta of 1.30.

United Airlines (NASDAQ:UAL - Get Free Report) last posted its quarterly earnings results on Tuesday, October 20th. The transportation company reported $2.54 earnings per share for the quarter, missing the consensus estimate of $2.57 by ($0.03). United Airlines had a return on equity of 18.09% and a net margin of 5.46%. The company had revenue of $17.88 billion during the quarter, compared to analysts' expectations of $17.89 billion. During the same quarter in the previous year, the company earned $2.78 EPS. The business's quarterly revenue was up 17.4% on a year-over-year basis. On average, analysts expect that United Airlines will post 7.87 EPS for the current year.

Insider Buying and Selling at United Airlines

In other United Airlines news, EVP Torbjorn Enqvist sold 20,000 shares of United Airlines stock in a transaction on Friday, July 24th. The stock was sold at an average price of $119.91, for a total value of $2,398,200.00. Following the completion of the sale, the executive vice president owned 114,800 shares of the company's stock, valued at approximately $13,765,668. This trade represents a 14.84% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Brett J. Hart sold 30,108 shares of the business's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $120.72, for a total value of $3,634,637.76. Following the completion of the transaction, the president owned 371,583 shares of the company's stock, valued at $44,857,499.76. This represents a 7.50% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 62,308 shares of company stock worth $7,520,754. Insiders own 0.86% of the company's stock.

Institutional Investors Weigh In On United Airlines

Institutional investors have recently modified their holdings of the business. Primecap Management Co. CA purchased a new position in United Airlines in the 2nd quarter worth about $2,238,617,000. Deutsche Bank AG bought a new stake in shares of United Airlines in the second quarter worth approximately $178,571,000. Bank of New York Mellon Corp bought a new stake in shares of United Airlines in the second quarter worth approximately $178,508,000. Bank of America Corp DE bought a new stake in shares of United Airlines in the second quarter worth approximately $153,537,000. Finally, PointState Capital LP purchased a new position in shares of United Airlines during the second quarter valued at approximately $120,968,000. 69.69% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about United Airlines

Here are the key news stories impacting United Airlines this week:

• Positive Sentiment: United expects fourth-quarter revenue to rise more than 20% year over year, accelerating from 17.4% growth in the third quarter. Strong bookings, higher fares and premium-travel demand are helping offset higher operating costs. United Airlines forecasts record fourth-quarter revenue growth above 20%
• Positive Sentiment: Analysts remain constructive despite lowering their targets. Argus cut its target from $140 to $125 while maintaining a “buy” rating, and Susquehanna reduced its target from $150 to $130 with a “positive” rating. Both targets imply substantial potential upside from recent levels.
• Positive Sentiment: United expanded its revolving credit facility from $3 billion to $5 billion and reportedly recaptured 72% of the increase in quarterly fuel expense, supporting liquidity and cost recovery. The expected certification of Boeing’s 737 MAX 10 could also help ease future fleet and capacity constraints. United Airlines posts record growth and lines up $5 billion liquidity
• Neutral Sentiment: The company is opening a large new lounge at Houston’s George Bush Intercontinental Airport as part of a $2.6 billion hub overhaul. The investment may strengthen United’s premium offering, although it is unlikely to materially affect near-term earnings. United Airlines set to open its biggest airport lounge
• Negative Sentiment: Fuel costs are the main pressure on UAL shares. United lowered fourth-quarter adjusted EPS guidance to $0.50–$1.50, well below the $1.81 consensus estimate, while warning that elevated fuel prices may persist through 2027. United Airlines sees elevated fuel costs through 2027
• Negative Sentiment: Third-quarter adjusted EPS of $2.54 narrowly missed expectations and declined from $2.78 a year earlier, despite revenue of $17.88 billion, up 17.4%. The earnings miss and weaker profit outlook are limiting the positive impact of record sales. United Airlines slashes 2026 profit outlook on fuel prices

United Airlines Company Profile

United Airlines Holdings, Inc is the parent company of United Airlines, a major U.S. commercial airline headquartered in Chicago, Illinois. The company provides scheduled passenger air transportation and air cargo services, connecting customers across the United States and to international destinations.

United operates a broad network serving North America, Latin America, Europe, Asia, Africa and Oceania. Its operations are supported by hubs in major U.S. cities, including Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, DC, as well as an extensive network of regional carriers operating under the United Express brand.

The company offers several travel classes and related services, including premium-cabin seating, onboard amenities, airport lounges and the MileagePlus customer loyalty program.

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