Analyst Ratings January 22, 2026

UBS Raises United Airlines Price Target Following Strong Q4 Performance

Investment firm upgrades stock outlook amid favorable earnings and cautious future guidance

By Nina Shah UAL
UBS Raises United Airlines Price Target Following Strong Q4 Performance
UAL

UBS has increased its price target for United Airlines to $147 from $145 after the airline reported better-than-expected fourth-quarter results. The company’s forward guidance for the upcoming quarter and 2026 aligns with investor anticipations, while analysts remain optimistic about potential earnings upgrades. Despite a current trading price of $114.52 and a P/E ratio of 11.17, United Airlines is viewed favorably amid strong demand indicators and conservative projections.

Key Points

  • UBS lifted United Airlines' price target to $147, maintaining a Buy rating, following strong Q4 earnings exceeding expectations.
  • United Airlines’ forward guidance for Q1 and fiscal year 2026 meets investor expectations, with cautious assumptions pointing to possible upside.
  • Other investment firms including Goldman Sachs, TD Cowen, and BMO Capital have also raised their price targets, signaling confidence in growth potential through demand and operational improvements.

Investment bank UBS raised its price target for United Airlines (NASDAQ: UAL) to $147.00 from the prior $145.00, sustaining a Buy rating on the shares. Currently, United Airlines is trading at $114.52, marking a 5.5% increase from the previous closing price of $108.57.

This adjustment in valuation follows the airline’s fourth-quarter report, which UBS characterized as exceeding market expectations. The airline's projections for the first quarter and fiscal year 2026 are in line with what investors anticipated, providing a steady outlook according to UBS analysts. Additionally, InvestingPro data highlights United’s profitability over the last twelve months, with diluted earnings per share (EPS) reported at $10.20.

UBS emphasizes that United Airlines adopted a more cautious stance than usual in its forecast, suggesting that there may be room for upside adjustments beyond current consensus projections. The broader Wall Street sentiment remains strongly positive, illustrated by an average analyst recommendation rating of 1.42 and price targets ranging significantly from $62 up to $156.

The new results bolster optimism for United’s stock, with UBS foreseeing a "good possibility for beats and raises" throughout the year 2026 if the company continues to capitalize on demand conditions. United Airlines trades at a price-to-earnings ratio of 11.17 and holds a market capitalization near $36.92 billion.

UBS also notes that further upward revisions to earnings estimates may be substantial if the current robust demand environment persists. Although InvestingPro’s analysis suggests that United’s market price might be somewhat elevated relative to its calculated Fair Value, the airline retains a "GOOD" overall financial health score. Investors seeking more detailed financial and operational analysis can refer to the comprehensive Pro Research Report available on InvestingPro.

Recent financial disclosures from United Airlines indicate an EPS of $3.19 for the fourth quarter of 2025, surpassing analyst expectations which were set at $2.96. The firm also recorded revenue slightly above estimates, amounting to $15.4 billion for the quarter. Other notable investment banks have responded positively: Goldman Sachs increased its price target to $135, maintaining a Buy ranking and citing favorable earnings and guidance; TD Cowen raised its target to $140, citing "very favorable" early demand metrics despite difficult prior year comparisons; BMO Capital also revised its price target upwards to $132.50, highlighting growth prospects tied to aircraft improvements, loyalty initiatives, and strategic partnerships. Collectively, these adjustments reflect a broadly constructive outlook for United Airlines in the near term.

Risks

  • The airline’s forward-looking guidance is stated to be more conservative than typical, indicating potential downside risk if market demand weakens.
  • Despite positive earnings, InvestingPro analysis suggests United’s current stock price may be overvalued compared to its Fair Value, posing valuation risk for investors.
  • Market conditions remain subject to uncertainties which could affect demand strength and subsequently impact potential earnings revisions and share price performance.

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