uploads/2016/01/Estimates.png

What Are Analysts Estimating for UAL in 2016?

By

Updated

Analyst estimates

Following United Continental’s (UAL) 4Q15 earnings release, analysts’ consensus 1Q16 estimates remained unchanged. Sales are expected to decline by 0.61% at $37.63 billion. Its EBITDA (earnings before interest, tax, depreciation, and amortization) is expected to grow by 15.5% to $1,351 million.

For 2016, analysts estimate that sales will decrease by 0.6% to $37.6 billion while EBITDA could grow by 10.5% to $7,716 million. EPS (earnings per share) is expected to rise by ~173% to $1.91.

Analysts are expecting UAL to maintain sales growth at 3% for 2017 and 2018. However, the growth in profitability is expected to slow going forward. For both 2017 and 2018, analysts are expecting EBITDA to decline by 5.5%. EPS is expected to increase by 4% and 12% in 2017 and 2018, respectively.

Article continues below advertisement

Analyst recommendations

Of the 16 analysts rating the stock, 93.8% (15 analysts) have a “buy” rating, 6.3% (one analyst) has a “hold” rating, and no analysts have a “sell” rating.

Target price

UAL’s consensus 12-month target price is $77.38, which indicates a 65.6% return potential. Analysts’ 12-month target prices for UAL’s peers are as follows:

  • American Airlines (AAL): $54.4 with 32.7% return potential
  • Delta Air Lines (DAL): $65.79 with 35.5% return potential
  • JetBlue Airways (JBLU): $29.21 with 34% return potential
  • Southwest Airlines (LUV): $53.5 with 24.9% return potential
  • Spirit Airlines (SAVE): $53.18 with 25.3% return potential
  • Alaska Air Group (ALK): $91.81 with 19% return potential

UAL comprises ~5% of the Dynamic Leisure & Entertainment Portfolio ETF (PEJ). In the next article, we will wrap up this series by looking at UAL’s valuation compared to its peers.

Advertisement

More From Market Realist