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United Airlines Holdings: Strong Q2 2025 Performance and Promising Growth Outlook Justify Buy Rating

United Airlines Holdings: Strong Q2 2025 Performance and Promising Growth Outlook Justify Buy Rating

Analyst Andrew Didora from Bank of America Securities reiterated a Buy rating on United Airlines Holdings and keeping the price target at $90.00.

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Andrew Didora has given his Buy rating due to a combination of factors including United Airlines Holdings’ strong financial performance in the second quarter of 2025. The company reported an impressive earnings per share (EPS) of $3.87, surpassing both the Street’s expectations and the midpoint of its guided range, despite facing disruptions such as Newark operational issues and canceled flights to Tel Aviv. This performance was largely driven by UAL’s premium cabin exposure, which sets it apart from other airlines.
Additionally, UAL’s unit costs excluding fuel grew at a slower rate than anticipated, contributing to the EPS beat. The company’s guidance for the third quarter and full year 2025 EPS aligns with expectations, and there has been a notable acceleration in demand, particularly in domestic markets. Furthermore, UAL’s financial health is bolstered by its recent repayment of $1.5 billion in loyalty program notes, leaving the program unencumbered. These factors collectively support Didora’s confidence in UAL’s business model and future growth prospects.

In another report released today, Barclays also maintained a Buy rating on the stock with a $100.00 price target.

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