Key Stats for United Airlines Stock
- Price Change: +8.9%
- Current Price: ~$116
- Street Target Price: $139
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What Happened?
Shares of United Airlines Holdings, Inc. (UAL) surged 8.9% to close near $116 on Friday, taking flight after a major vote of confidence from Wall Street.
TD Cowen naming United a “Top Pick” for 2026 fueled the rally, arguing that the industry’s “capacity discipline” is finally translating into durable profits.
Moreover, this bullish call aligns with the company’s recent Q4 performance, where they reported Adjusted EPS of $3.10, beating analyst estimates of $2.94.
Investors are also cheering the broader sector tailwinds, as competitors like Delta Air Lines (NYSE:DAL) also rallied, signaling a “rising tide” for the major carriers.
The company’s guidance for Q1 2026 sees earnings between $1.00 and $1.50 per share, confirming that the momentum is carrying into the new year.
See analysts’ growth forecasts and price targets for United Airlines stock (It’s free!) >>>
Is United Airlines Undervalued Today?
During the earnings call, CEO Scott Kirby emphasized the structural changes that are benefiting the airline.
He noted: “We have diversified our revenue streams… Premium revenue continues to grow faster than coach, and our loyalty program is a high-margin fortress.”
This shift toward “premium” is key, as it makes the airline less reliant on the volatile economy class pricing wars of the past.
Management also addressed the balance sheet, noting that they raised $1 billion in senior notes to further fortify their financial position.
Read the full United Airlines Transcript on TIKR to see the 2026 Outlook >>>
According to the Street Targets, the stock is trading at a discount to its peer-derived fair value.
- Target Price: $139
- Current Price: ~$116
- Potential Upside: +20.2%
Valuation Deep Dive (Street Targets)
The investment case for United Airlines is built on a “Quality at a Reasonable Price” framework.
With the internal model lagging, we look to the Street’s assessment of the company’s earnings power.
- The Multiple Disconnect: At $116, the stock trades at just 7.9x Forward Earnings, a massive discount to the broader market and its own historical average.
- The Profit Engine: The consensus expects $3.35 billion in Net Income to grow as the company capitalizes on its “United Next” fleet expansion.
- The Cash King: With $12.2 billion in cash and short-term investments, United has the firepower to weather any storm or pay down its $20 billion debt load.
If United can hit its 2026 targets, the multiple expansion from 8x to even 10x would easily justify a move to $139.
Conclusion: Cleared for takeoff. With a 20.2% upside potential to $139, United Airlines offers a compelling value proposition for investors who believe the “Golden Age” of travel is just beginning.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
