UBS Upgrades United Airlines (UAL) to Buy on Tariff Relief, Hikes PT

From Yahoo Finance: 2025-05-20 15:03:00

UBS upgraded United Airlines Holdings Inc. (UAL) from Neutral to Buy, with a price target increase from $67 to $105, citing recent tariff agreements with China and the UK. This shift comes as UBS changes its economic outlook from downturn to stability and slow growth.

Analysts at UBS expressed confidence in United Airlines’ resilience in international and premium revenue streams due to a stable economic backdrop and US equity market recovery. They predict a 3% growth in total revenue per available seat mile (TRASM) by 2026, easing pressure on TRASM.

In Q1 2025, United Airlines reported record revenue of $13.2 billion, a 5.4% year-over-year increase, with a 0.5% rise in TRASM and 9% growth in loyalty revenue to $1.5 billion. The company operates air transportation services in various regions, transporting people and cargo through its fleets.

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Read more: UBS Upgrades United Airlines (UAL) to Buy on Tariff Relief, Hikes PT