J.P. Morgan analyst Jamie Baker has maintained their bullish stance on UAL stock, giving a Buy rating today.
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Jamie Baker has given his Buy rating due to a combination of factors, including United’s strong recent execution and favorable positioning within the airline industry. United delivered quarterly earnings that exceeded market expectations, supported by solid revenue growth driven particularly by premium cabins and loyalty program contributions, while cost performance was better than modeled. Management’s earnings guidance for both the upcoming quarter and full year comfortably encompasses consensus forecasts, underscoring confidence in earnings durability even after a year that unfolded differently than initially expected. Additionally, early 2026 booking trends, including record business sales, point to robust demand momentum.
Jamie Baker also highlights United’s exposure to powerful structural tailwinds, especially sustained strength in international travel and premium demand, which are benefiting large network carriers over low-cost competitors. The firm views United’s “United Next” strategic plan as starting to materially enhance the company’s earnings power, supported by improving balance sheet metrics such as steadily declining leverage. On valuation, Baker’s price target of $156 is derived from a blended methodology using forward P/E and EV/EBITDAR multiples applied to 2027 estimates, in line with other major legacy peers but at a premium to discount carriers to reflect higher margins and superior international exposure. Taken together, these operational, strategic, and valuation considerations underpin the Buy recommendation on UAL shares.
In another report released today, UBS also maintained a Buy rating on the stock with a $147.00 price target.