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How Analysts View United Airlines ahead of Its Q1 Results



Analysts’ recommendations

According to analysts’ ratings, United Airlines (UAL) could be an intriguing choice for investors, as they see massive upside potential in the stock.

United Airlines has received a consensus rating of ~2.1 and a consensus “buy” recommendation from analysts polled by Reuters.

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Approximately 62% of analysts have provided bullish recommendations on United Airlines. Seven out of 21 analysts have given it “strong buy” recommendations, six have given it “buy” recommendations, seven have given it “hold” recommendations, and the remaining one analyst has given it a “sell” recommendation. Analysts’ target price of $102.41 represents a potential upside of 19.4% from the stock’s current price of $85.75.

United Airlines’ four consecutive quarters of strong top and bottom line results drove bullish sentiments in its stock. The company’s adjusted EPS and revenues surpassed Wall Street’s respective estimates and marked significant YoY (year-over-year) improvements in all of the trailing four quarters. Going forward, analysts believe that the US air carrier will continue to benefit from a healthy travel environment, the addition of more premium seats, and cost-cutting measures.

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Analysts seem bullish on the entire airline industry (IYT). They’ve provided “buy” ratings on most of United Airlines’ competitors. The one-year target prices for Delta Air Lines (DAL), American Airlines (AAL), and Southwest Airlines (LUV) show potential upsides of 13.4%, 24.3%, and 11.8%, respectively, from their current prices.

Stock price performance

United Airlines stock has risen 2.4% YTD (year-to-date). The stock has underperformed the gains of major US indexes as well as its peers. YTD, the Dow Jones Industrial Average, the NASDAQ Composite Index, and the S&P 500 Index are up 12.1%, 19.8%, and 15.2%, respectively.

Shares of United Airlines’ competitors Delta Air Lines, American Airlines, and Southwest Airlines have returned 17%, 8.4%, and 14%, respectively.


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