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Research Alert: CFRA Raises Opinion On Shares Of United Airlines Holdings, Inc To Buy From Hold

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Oil prices have retreated ~15% from May's $108 high. We upgrade UAL to Buy from Hold, raise our price target by $28 to $128, and lift our 2026 EPS to $11.07 from $11.02 and 2027's to $14.20 from $13.33. Our target reflects 9x 2027 EPS (from 7.5x), and our multiple expansion reflects increased confidence in UAL's ability to offset fuel headwinds through pricing and capacity optimization. Q1 business revenue rose 14% Y/Y, and UAL expects full fuel cost recapture by 4Q. We see opportunity for UAL to retain strong unit revenues post-spike. We favor UAL's industry-leading unit cost performance, led by fixed cost leverage across the largest fleet and geographic diversification. Domestic trends remain solid, with UAL noting no customer pushback on higher fares. Capacity is largely set for 2Q, with 3Q/4Q guided flat to +2% Y/Y depending on fuel. While oil remains a key variable, UAL's operational execution and pricing power position it favorably. Key risk is demand softening if macro conditions deteriorate.

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