Bank of America Securities (BofA Securities) increased its price target for United Airlines (NASDAQ: UAL) to $145.00 from a previous $130.00 this past Friday, while reaffirming a Buy rating on the stock. United Airlines shares were last valued at approximately $110.40 and exhibit a price-to-earnings ratio near 10.88, an indicator that valuation might appear stretched based on InvestingPro's analysis.
This upward adjustment in the price target closely follows United’s fourth-quarter 2025 financial report, which BofA notes shares considerable similarities with the recent earnings release from Delta Air Lines. Key highlights include solid premium revenue performance, improving demand outlooks, and a conservative financial guidance approach. United posted revenue totaling $59.07 billion over the trailing twelve months, aligning well with six analysts who have recently raised their earnings projections for the airline's upcoming reporting period, according to InvestingPro data.
BofA Securities revised its earnings per share (EPS) estimate for United Airlines' first quarter of 2026 to $1.30 from $1.08, slightly surpassing United's own midpoint guidance of $1.25. Additionally, the full-year 2026 EPS forecast was increased modestly to $13.25 from $13.08.
The firm attributed a significant rise in United Airlines' expected 2026 free cash flow from $1.5 billion previously to $2.7 billion, which primarily influenced the elevated price target. The airline has experienced promising demand early in 2026 though it continues to provide cautious guidance reflecting the industry's volatility observed in prior periods.
Additional context from United's fourth-quarter 2025 results shows earnings per share at $3.19, outperforming analysts’ estimates of $2.96, and revenues reaching $15.4 billion, surpassing expectations. These results have led various investment firms to adjust their price targets: UBS elevated its target to $147 citing strong quarterly results and positive alignment with 2026 guidance; BMO Capital increased its target to $132.50 highlighting growth across business segments; TD Cowen raised its target to $140 referencing encouraging early demand indicators; and Goldman Sachs lifted its price target to $135 attributing confidence to better-than-anticipated earnings and favorable first-quarter forecast.
Collectively, these adjustments reflect a broadly optimistic analyst stance toward United Airlines’ near-term financial trajectory and overall market positioning within the airline sector.