UBS Upgrades United Airlines (UAL) to Buy on Tariff Relief, Hikes PT

On Monday UBS upgraded United Airlines Holdings Inc. (NASDAQ:UAL) from Neutral to Buy, while increasing its price target from $67 to $105. This upgrade is based on the recent 90-day tariff agreement with China and a framework established with the UK, which have together led UBS to shift its economic outlook from an anticipated downturn to a scenario of stability and slow growth.

UBS analysts expressed increased confidence in the resilience of international and premium revenue streams due to a more stable economic backdrop and the recent recovery in the US equity market. This was previously a cyclical concern for United Airlines. The firm now anticipates that the pressure on total revenue per available seat mile/TRASM will ease and projects a 3% growth in TRASM by 2026.

In Q1 2025, United Airlines achieved a record $13.2 billion in revenue, which was a 5.4% year-over-year increase, with a 0.5% rise in TRASM. Loyalty revenue also grew by 9% to $1.5 billion. United Airlines Holdings Inc. (NASDAQ:UAL) provides air transportation services in the US, Canada, the Atlantic, the Pacific, and Latin America. It transports people and cargo through its mainline and regional fleets.

While we acknowledge the potential of UAL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UAL that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.