Argus lowered its rating on United Airlines Holdings ( NASDAQ: UAL ) to Hold after having the airline stock lined up at Buy.
Analyst John Staszak and team expect UAL to turn profitable in the second quarter and remain so over the rest of the year, driven by strong demand for international flights and a recovery in corporate travel. However, demand for leisure travel in the U.S. is seen leveling off as the economy weakens and consumer confidence drops.
The firm cut its 2022 EPS estimate on UAL to $1.80 from $3.50 to reflect flight cancellations, pilot shortages and higher fuel prices. The 2023 EPS estimate on UAL was cut to $7.00 from $7.30 to reflect the cost pressures.
Shares of UAL fell 0.55% premarket to $36.46 vs. the 52-week trading range of $30.54 to $54.52.
The Wall Street ratings scorecard on UAL shows 9 Buy-equivalent ratings, 9 Hold-equivalent ratings, and 2 Sell-equivalent ratings.
The Seeking Alpha Quant Rating on UAL flipped to Buy from Hold on April 22.
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United Airlines is cut to neutral at Argus due to cost pressures