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Jefferies upgrades United Airlines Holdings (NASDAQ: UAL) upgraded its rating to “buy” on Wednesday as the stock offers opportunities to create wealth.
Analyst Sheila Kahyaoglu notes United Airlines’ (UAL) decision to retain its entire widebody fleet During the pandemic, the company delivered record international profits in 2023, on a timeline that was significantly ahead of its peers and 2019 levels. Looking ahead, UAL’s international strength is expected to return to normal sometime in 2024.
Kahyaoglu also pointed to UAL’s shareholder-friendly management team, free cash flow potential and upside to international margins. Crucially, United Airlines’ ( UAL ) fall investor day is seen as a potential catalyst later this year.
In terms of valuation, UAL trades at a 25% discount to peers on a 2025 EV/EBITDA basis. Jefferies has a price target of $65.
United Airlines (UAL) shares fall 0.62% It rose to $50.33 premarket, while the 52-week trading range was $33.68 to $58.23. The airline’s shares are still up more than 22% so far this year. UAL’s Seeking Alpha Quant rating is “Strong Buy.” UAL’s quantitative score ranks third in the airline industry.
