-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month price target by $3 to $100, 7.5x our 2027 EPS estimate (unchanged) and in line with the shares' five-year average forward multiple. We lower our 2026 EPS to $11.02 from $11.55 and 2027's to $13.33 from $13.74, primarily reflecting significant fuel cost headwinds. We reiterate our Hold opinion, viewing Q1 results as evidence of pricing power, with revenue growth of 10.6% driven by premium (+14%) and loyalty (+13%) customers. However, offsetting strong demand is significant fuel cost pressure (+13% in Q1) that prompted management to lower adjusted EPS guidance by roughly 30%. At current levels, shares trade at approximately 6x consensus 2027 EPS estimates, appearing to discount near-term fuel headwinds. However, sustained higher oil prices would represent an even more significant EPS headwind than reflected in our estimates, which sit $0.02 above the high end of management's guidance. While UAL's pricing power is encouraging, we see balanced risk/reward with limited margin for error.