Wall Street says United (UAL) is ready to soar, but is the market sleeping on it?
Shares of United Airlines Holdings (UAL) may finally be ready for takeoff as rising travel demand, the end of the federal government shutdown, and improving technicals lift sentiment around the major carriers.
UAL has rebounded sharply over the past month amid the holiday travel season and following the resolution of the longest government shutdown on record.
As InvestorsObserver reported in November, airlines were on a knife-edge during the standoff, with concerns that staffing shortages and operational strain could lead to widespread delays and cancellations during one of the busiest travel periods of the year.
With that uncertainty now behind them, analysts at Citigroup have turned more optimistic on America’s so-called “super airlines,” a group that includes American Airlines (AAL), Delta Air Lines (DAL), and United Airlines.
Citi initiated coverage of UAL with a “Buy” rating and a $132 price target. Even after a roughly 12% rally since the shutdown ended, the target implies another 23% upside from current levels.
Despite recent turbulence across the industry, Citi argues that UAL and the other major carriers remain well-positioned.
The bank expects them to benefit from resilient demand, stronger pricing power, and more efficient cost structures - advantages that smaller carriers lack and that leave the latter more exposed to demand softening and fare pressure.
United Airlines posts mixed results but raises outlook
United Airlines posted a resilient set of third-quarter results, delivering earnings that topped expectations and raising its profit outlook for the current quarter. The stronger forecast helped offset revenue that came in slightly below expectations.
The airline expressed confidence heading into next year as it continues expanding capacity, even as several competitors scale back their growth plans. CEO Scott Kirby attributed United’s momentum to strong customer loyalty and nearly a decade of investment in in-flight WiFi, upgraded cabins, and other service improvements.
“Those investments over almost a decade, combined with great service from our people, have allowed United to win and retain brand-loyal customers,” Kirby said.
For the quarter, United reported earnings of $2.78 per share on revenue of $15.23 billion.
Technical indicators reinforce bullish case for UAL stock
Citi’s upbeat price target and United’s expanding business align with improving technical indicators, with traders watching what appears to be a developing cup-and-handle pattern on UAL’s chart, a formation that often precedes a breakout.
UAL is currently trading around $107, with traders eyeing a stubborn hurdle near $110. This level has acted as resistance for much of 2025.
A decisive close above that range would strengthen the bullish case and could open the door for a move toward Citi’s $132 target.