2023-03-10 07:06:05 ET
United Airlines Holdings ( NASDAQ: UAL ) landed a Buy rating from Barclays in the firm's sweep of the airline sector on Friday.
Analyst Brandon Oglenski and team noted air travel demand remains robust heading into the peak spring break period, which could prompt guidance updates from management teams. Barclays said it is taking some leverage risk in large cap airlines due to the driven United management team
"Focused leadership and ambitious earnings plans coupled with outsized exposure to growing and lucrative long-haul markets drives attractive risk/reward in UAL shares despite incrementally risky balance."
Oglenski assigned a price target of $80 to UAL vs. the prior PT of $52. The new PT is an average 6.0X P/E multiple on the 2024 EPS estimate of $13.25 and a 5.0X EV/EBITDAR multiple for the 2024 EBITDAR estimate of $10.5B.
Shares of UAL pushed up 1.29% premarket to $52.79 vs. the 52-week trading range of $31.58 to $55.04.
The Seeking Alpha Quant Rating on UAL is flashing Strong Buy.
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United Airlines gains after attracting buy rating from Barclays