DBS analyst Tabitha Foo maintained a Buy rating on United Airlines Holdings (UAL – Research Report) yesterday and set a price target of $100.00.
Tabitha Foo’s rating is based on United Airlines Holdings’ strong financial performance and strategic positioning. The company has exceeded earnings expectations with a significant increase in adjusted EPS and record revenue, driven by robust premium demand and effective cost management. United Airlines’ extensive international network and focus on premium and long-haul travel segments position it favorably against competitors, allowing it to capture market share and benefit from higher margins.
Furthermore, United Airlines is expected to see substantial operating profit growth over the next few years, with margins recovering to pre-pandemic levels. The company’s strategic initiatives, including cost-cutting measures and improved credit metrics, are anticipated to bolster its financial health. Additionally, the stock is trading at a discount compared to its peers, offering potential upside as operating margins improve and capital spending is optimized to enhance shareholder returns.
In another report released on April 16, Barclays also maintained a Buy rating on the stock with a $94.00 price target.
UAL’s price has also changed slightly for the past six months – from $73.330 to $66.300, which is a -9.59% drop .