United Continental (UAL) PT Raised to $165 at TD Cowen

TD Cowen analyst Tom Fitzgerald raised the price target on United Continental (NASDAQ: UAL) to $165.00 (from $142.00) while maintaining a Buy rating.

The analyst commented: "We came away impressed by UAL's earnings call earlier this week and with greater conviction in our 2025 Best Idea. Company ideally positioned to capitalize on current industry dynamic in 2025 with LT investments (both aircraft CapEx & investing to decommoditize the product) set to drive margins higher in 2026 and beyond. Net leverage expected <2x during 2025. $1.4bn left in buyback authorization.

We update our model for UAL to incorporate actual 4Q24/FY24 results, guidance for 1Q25/ FY25, and estimates for 2027. For 1Q25, we assume capacity growth of 3.5%, a load factor of 81%, RASM of 18.51 cents, CASMex of 13.76 cents, and fuel of $2.65 per gallon. We estimate an adjusted EBIT margin of 4.5% and adjusted EPS of $1.10. For FY25, we assume capacity growth of 5.4%, a load factor of 83.3%, RASM of 18.94 cents, CASMex of 12.99 cents, and fuel of $2.57 per gallon. We maintain our FY25 adjusted EPS estimate of $13.14, but tweak our quarterly assumptions. We raise our price target to $165, or 10.7x our FY26 adjusted EPS estimate."

You May Also Be Interested In

• Eos Energy Enterprises (EOSE) PT Lowered to $5 at B.Riley
• Wedbush Downgrades Globant S.A. (GLOB) to Neutral on balanced risk/reward
• York Space Systems (YSS) PT Lowered to $18 at Needham