- Raymond James analyst Savanthi Syth lowered the price target for United Airlines Holdings Inc (NYSE:UAL) to $48 (an upside of 35%) from $62 while maintaining the Outperform rating on the shares.
- The analyst states that the revised U.S. airline estimates reflect a stronger near-term revenue trend, stubbornly higher fuel prices, anticipated demand softening, and planned and expected capacity growth moderation.
- Related: Raymond James Shakes Up Ratings & Price Targets On Several US Airlines
- Syth believes United is well-positioned to take advantage of the recovery in business and long-haul international travel.
- She added that greater exposure to these segments that are still recovering should result in less pressure of demand loss than in past recessions.
- Also Read: Pilot Shortage Pushes American Airlines To Quit Services In 4 Cities: CNBC
- United is better positioned to weather the impact of pilot supply and cost trends while benefiting from industry supply constraints, noted the analyst.
- She states that UALs highly elevated United Next Capex plan is a notable risk for the airline heading into any slowdown.
- Price Action: UAL shares are trading lower by 3.27% at $35.52 on the last check Thursday.
