Airline stocks hit a 52-week high after solid results from United Airlines

Written by Emily J. Thompson, Senior Investment Analyst

UAL-0.5%

AAL-0.86%

JBLU-2.36%

Source: SeekingAlpha

Updated: Oct 16 2024

0mins

Source: SeekingAlpha

Market Performance: The Dow Jones U.S. Airlines Index and the U.S. Global Jets ETF reached new highs following United Airlines' strong Q3 earnings report.
Earnings Impact: United Airlines exceeded expectations in its earnings, contributing to the positive momentum in airline stocks.

UAL

$110.4+Infinity%1D

Analyst Views on UAL

Wall Street analysts forecast UAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UAL is 139.07 USD with a low forecast of 115.00 USD and a high forecast of 156.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

16 Analyst Rating

15 Buy

1 Hold

0 Sell

Strong Buy

Current: 110.960

Low

115.00

Averages

139.07

High

156.00

Current: 110.960

Low

115.00

Averages

139.07

High

156.00

BMO Capital

Outperform

maintain

$125

2026-01-22

New

Reason

BMO Capital

Price Target

$125

AI Analysis

2026-01-22

New

maintain

Outperform

Reason

BMO Capital raised the firm's price target on United Airlines to $132.50 from $125 and keeps an Outperform rating on the shares after its Q4 earnings beat. The company's FY26 guidance could prove conservative should January momentum persist, and the firm is also encouraged by results with continued runway for United Airlines on a number of fronts, including gauge, loyalty/co-brand credit card, merchandising, and Kinective Media, the analyst tells investors in a research note.

TD Cowen

Buy

maintain

$138 -> $140

2026-01-22

New

Reason

TD Cowen

Price Target

$138 -> $140

2026-01-22

New

maintain

Buy

Reason

TD Cowen raised the firm's price target on United Airlines to $140 from $138 and keeps a Buy rating on the shares. The firm says early demand indicators are "very favorable" for United against tough January compares. It believes United Airlines is the "name to own amidst industry gentrification."

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Argus

John Staszak

Buy

downgrade

$140 -> $135

2026-01-22

New

Reason

Argus

John Staszak

Price Target

$140 -> $135

2026-01-22

New

downgrade

Buy

Reason

Argus analyst John Staszak lowered the firm's price target on United Airlines to $135 from $140 but keeps a Buy rating on the shares. The firm expects demand for air travel to grow driven by positive trends in corporate travel and looks for higher revenues to offset inflationary headwinds, the analyst tells investors in a research note. Argus adds that it expects to see a continued recovery in demand for premium seating and trans-Atlantic flights.

UBS

Buy

maintain

$145 -> $147

2026-01-22

New

Reason

UBS

Price Target

$145 -> $147

2026-01-22

New

maintain

Buy

Reason

UBS raised the firm's price target on United Airlines to $147 from $145 and keeps a Buy rating on the shares. United's latest results reinforce the bull case, with a Q4 beat and Q1 and FY26 guidance in line with buy side expectations despite a conservative outlook, setting up a strong potential for beats and raises as the year progresses if current demand strength continues, the analyst tells investors in a research note.

About UAL

United Airlines Holdings, Inc. is a holding company. The Company transports people and cargo throughout North America and to destinations in Asia, Europe, Africa, the Pacific, the Middle East and Latin America. The Company, through United Airlines, Inc., and its regional carriers, operates across six continents, with hubs at Chicago O'Hare International Airport (ORD), Denver International Airport (DEN), George Bush Intercontinental Airport (IAH), Los Angeles International Airport (LAX), Newark Liberty International Airport (EWR), San Francisco International Airport (SFO), Washington Dulles International Airport (IAD) and A.B. Won Pat International Airport (GUM). Its hub and spoke system allow it to transport passengers between a large number of destinations with frequent services. The Company has contractual relationships with various regional carriers to provide regional aircraft service branded as United Express. It provides freight and mail transportation services (Air Cargo).

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.