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Opinions Paul Harris, CFA
United Airlines HoldingsUALDON'T BUYApr 21, 2022
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentOur PAST TOP PICK with UAL has triggered its stop at $48. To remain disciplined, we recommend covering the position at this time. Combined with the previous buy recommendations, this will result in a net investment loss of 6%.
Premium contentWe reiterate UAL as a TOP PICK. The company just announced it has purchased land in Denver to expand its pilot training centre. It is already Denver's largest employer, operation 400 flights daily from there. Quarterly cash flow is growing as debt is retired. It trades at 6x earnings, 2.2x book and supports a 45% ROE. We recommend trailing up the stop (from $44) to $48, looking to achieve $71 -- upside potential of 30%. Yield 0%.
(Analysts’ price target is $71.29)Premium contentPremium contentUAL is benefiting from pent up domestic and international travel demand. Management expects quarterly revenue growth of 14% and cargo revenue is growing. It trades at 20x earnings (only 5x forward earnings), 2x book, and supports a 37% ROE. Latest quarterly cash reserves were growing, while debt was retired. We recommend a stop-loss at $40, looking to achieve $62.50 -- upside potential of 30%. Yield 0%
(Analysts’ price target is $62.41)
Stan Wong
