Barclays analyst Brandon Oglenski reiterated an Overweight rating and $60.00 price target on United Airlines (NASDAQ: UAL).

The analyst commented, "United provided a relatively positive first quarter earnings outcome and second quarter guidance, similar to Delta last week. The carrier generated relatively favorable domestic and trans-Atlantic unit revenue performance in the first quarter, which we believe sets up for continued positive outcomes in the second quarter. We expect management will provide some additional color on demand during the earnings call tomorrow, but guidance is likely to remain limited to the provided 2Q24 EPS range of $3.75 to $4.25. The company provided an updated fleet plan which incorporates lower Boeing deliveries through 2025 and the conversion of prior MAX 10 orders to MAX 9s and maintain the right to convert more to MAX 8/9 variants. Management is also likely to discuss the recently announced FAA safety review and potential impacts it could have on growth, which is likely to be reduced in conjunction with lower Boeing deliveries. Nonetheless, the lower aircraft delivery schedule will likely create some near-term cost pressure for United as the airline was likely geared for a larger operation, but will likely appease investors that were concerned about aggressive capacity growth. Further, with lower capital spending, United will likely speak to expectations for generating free cash flow, with opportunities for future shareholder distributions. While the market is likely to continue treading carefully in the airline sector given global geopolitical volatility and the impact on energy markets, we see United delivering against prior expectations despite continued Boeing related headwinds."

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Shares of United Airlines closed at $41.50 yesterday.