United Airways: TD reiterates Purchase, raises PT on robust earnings, outlook

Investing.com– TD Cowen reiterated its Purchase score on United Airways Holdings Inc (NASDAQ:UAL), whereas additionally elevating its worth goal on the inventory on constructive fourth quarter earnings, which additional underpinned a robust outlook for 2025. 

TD raised its worth goal on UAL to $165.0 from $142.0, and reiterated its Purchase score. The brand new PT represents an upside of 60% from UAL’s Thursday shut.

UAL clocked stronger-than-expected earnings for the December quarter, and in addition offered above-consensus steering for the present quarter. The airline flagged robust and broad-based demand for journey throughout all its geographies, and in addition famous enchancment in company journey. 

TD analysts mentioned they had been impressed by the corporate’s earnings name, which in flip furthered its standing as one of many brokerage’s “finest concept(s)” for 2025. 

The brokerage mentioned UAL is “ideally positioned to capitalize on present business dynamic” with investments in luxurious journey, which is changing into a significant margin driver for the journey business. 

TD expects UAL’s advantages from investments to “decide up materially” in 2026 and 2027, each on plane and operations. The brokerage additionally famous UAL’s set up of satellite tv for pc web by means of StarLink throughout its fleets, in addition to its investing in promoting platform Kinective Media as main differentiators for its enterprise. 

UAL has been a standout amongst airline shares, as the corporate capitalized on a post-COVID restoration in journey demand, whereas leaning extra into growing demand for luxurious.