Wall Street Attitude Towards United Airlines Shares: Bullish or Bearish?

Wall Street Attitude Towards United Airlines Shares: Bullish or Bearish?

United Airlines (UAL) has outperformed both the S&P 500 (SPX) and the U.S. Global Jets ETF (JETS) over the past year, but the stock has faced some challenges in 2025.

In the last 12 months, UAL has gained a substantial 89.5%, outpacing the SPX's 16.6% rally and JETS' 25.1% growth. However, in the first half of 2025, UAL has experienced a 9.1% decline, while the SPX has risen by 7.8%.

Analysts remain bullish on UAL, with 22 analysts covering the stock giving it a "Strong Buy" consensus. TD Cowen and Deutsche Bank recently raised their price targets to around $100-$101, reflecting their confidence in UAL's recovery.

On July 16, UAL posted its fiscal 2025 second-quarter earnings, which saw a 1.7% year-over-year increase in revenue to $15.2 billion, with an adjusted EPS of $3.87. Net income fell 26.4% to $973 million, though premium cabin and loyalty revenues saw healthy growth. UAL's shares popped 2.4% in response to the earnings report.

Despite the solid revenue growth, UAL has faced some profit pressure, with adjusted EPS down from $4.14 in the previous year. The company trimmed its full-year EPS guidance to between $9.00 and $11.00 due to somewhat weaker demand early in the year. However, management remains optimistic about travel demand improving from mid-July onward.

Morningstar notes United's strong premium and loyalty revenue streams but highlights high uncertainty and cautions about potential profit volatility. The Street-high price target of $140 suggests an ambitious upside potential of 58.5% for UAL, while the mean price target of $110 represents a 24.6% premium to UAL's current price levels.

UBS Group AG analyst Thomas Wadewitz recently raised United Airlines' price target from $103 to $114, maintaining a "Buy" rating for the company, reflecting continued confidence in UAL's growth potential.

UAL is a global airline network company based in Chicago, Illinois, with a market cap of $29.2 billion. The company provides ancillary services such as catering, ground handling, aircraft maintenance, and pilot training for third parties.

It is important to note that all information and data in this article is solely for informational purposes. Kritika Sarah held no position in any of the securities mentioned at the time of publication. For more information, view the Disclosure Policy here.

[1] Yahoo Finance. (2025). United Airlines (UAL) Q2 2025 Earnings Call Transcript. Retrieved July 19, 2025, from https://finance.yahoo.com/news/united-airlines-ual-q2-2025-earnings-call-transcript-170000788.html

[2] CNBC. (2025). United Airlines stock soars after Q2 earnings beat expectations. Retrieved July 19, 2025, from https://www.cnbc.com/2025/07/16/united-airlines-stock-soars-after-q2-earnings-beat-expectations.html

[3] Morningstar. (2025). United Airlines (UAL). Retrieved July 19, 2025, from https://www.morningstar.com/us/stocks/xnas/ual/analysis

In light of United Airlines' revenue growth and analyst optimism, investors may find the airline an attractive option for long-term investments in the finance sector. However, potential investors should consider the profit pressure and volatility highlighted by Morningstar.

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