Bank of America Securities analyst Andrew Didora has reiterated their bullish stance on UAL stock, giving a Buy rating on April 17.
Andrew Didora has given his Buy rating due to a combination of factors that highlight United Airlines Holdings’ potential for strong performance despite economic uncertainties. The company’s revenue diversification across corporate, leisure, premium, and international segments positions it well to withstand varying demand scenarios. Even in a potential recession, United Airlines is expected to outperform due to its robust loyalty program and ability to generate free cash flow.
Furthermore, United Airlines is actively engaging in stock buybacks, which indicates management’s confidence in the company’s value. Although the price objective has been adjusted to $90 from $100, this still represents a significant upside potential of nearly 40%. The valuation is based on a multiple that reflects the company’s expected earnings power, which, while weaker this year, is anticipated to improve. These strategic moves and financial metrics underpin Andrew Didora’s optimistic outlook on United Airlines Holdings, justifying the Buy rating.
In another report released on April 17, Susquehanna also reiterated a Buy rating on the stock with a $81.00 price target.