[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  DonCorleone77 [@CorleoneDon77](/creator/twitter/CorleoneDon77) on x 5289 followers Created: 2025-07-18 19:03:04 UTC $UAL Attached is page X of a 7-page Bank of America analyst report on UAL issued yesterday entitled: "Inflecting demand with a cost story in place; raise estimates and PO" Bank of America has a 'Buy' rating on UAL with a $XXX price target. Bank of America's summary statement regarding UAL in the report includes the following: "UAL’s diversified revenues, costs drive estimates higher: As discussed in our first take, UAL’s diversified revenue streams that focus on higher end premium, international, and loyalty are helping drive margins to the top of the industry. Given positive commentary on recent domestic demand inflecting in the first two weeks of July and better industry capacity in the fall, we see unit revenues improving in 3Q25 and getting close to flat in 4Q25, from -X% in 2Q25. Costs are also on a better trajectory, and we raise our estimates to the higher end of the 3Q25 and 2025 guided ranges. On our higher estimates, we raise our PO to $XXX from $XX as we roll forward our methodology to our higher 2026 estimates. We reiterate our Buy rating. 2H25 unit costs better than feared; 2026 should benefit: Commentary on 2H25 unit costs growing similarly to 2Q25 at +2.2% was better than our previous +3.5-4.0% forecasts, and we lower our 3Q25/4Q25 growth down to +2.5%. We believe this is a solid outcome, particularly given the potential new flight attendant deal that could be signed at the end of the month that we estimated to be about a 100bps headwind on an annualized basis. We think this sets a strong trajectory in 2026, where we forecast +2.5% unit cost growth as well. Raising 2025 and 2026 EPS estimates: UAL has a long history of being conservative in its outlook, and the 2Q25 EPS results that beat the midpoint of its guided range despite an approximate $XXXX impact from disruption at Newark is the latest example. With 2H25 unit cost growth in the X% range and recent green shoots in demand, we raise our 3Q25E EPS by $XXXX to $2.70, which is at the higher end of the $2.25-2.75 guided range while our 2025 EPS goes to $XXXXX from $10.00, also towards the high end of the $9-11 guided range. Our 2026 EPS is raised to $XXXXX from $11.41, which is nearly +20% growth year-over-year. -- Price Objective Basis: Our $XXX PO is based on approximately 5.5-6x our 2026E EBITDAR. Our target multiple is in line with UAL's legacy peers. We believe the network carriers can trade towards the high end of their historical valuation ranges (4-6x) given depressed earnings. -- Upside risks to our price objective are: Better than expected pricing, a faster than expected resolution of labor contracts, and a stronger macro backdrop. -- Downside risks to our price objective are: Higher fuel prices, general economic weakness, government regulation/taxes, safety concerns, and terrorism/geopolitical events." (Page X is not available here as X does not allow me to post pages from reports on this platform) XXX engagements  **Related Topics** [united states](/topic/united-states) [bank of](/topic/bank-of) [$ual](/topic/$ual) [stocks industrials](/topic/stocks-industrials) [bank of america](/topic/bank-of-america) [stocks financial services](/topic/stocks-financial-services) [stocks banks](/topic/stocks-banks) [Post Link](https://x.com/CorleoneDon77/status/1946284605025484902)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
DonCorleone77 @CorleoneDon77 on x 5289 followers
Created: 2025-07-18 19:03:04 UTC
$UAL
Attached is page X of a 7-page Bank of America analyst report on UAL issued yesterday entitled:
"Inflecting demand with a cost story in place; raise estimates and PO"
Bank of America has a 'Buy' rating on UAL with a $XXX price target.
Bank of America's summary statement regarding UAL in the report includes the following:
"UAL’s diversified revenues, costs drive estimates higher:
As discussed in our first take, UAL’s diversified revenue streams that focus on higher end premium, international, and loyalty are helping drive margins to the top of the industry. Given positive commentary on recent domestic demand inflecting in the first two weeks of July and better industry capacity in the fall, we see unit revenues improving in 3Q25 and getting close to flat in 4Q25, from -X% in 2Q25.
Costs are also on a better trajectory, and we raise our estimates to the higher end of the 3Q25 and 2025 guided ranges. On our higher estimates, we raise our PO to $XXX from $XX as we roll forward our methodology to our higher 2026 estimates. We reiterate our Buy rating.
2H25 unit costs better than feared; 2026 should benefit:
Commentary on 2H25 unit costs growing similarly to 2Q25 at +2.2% was better than our previous +3.5-4.0% forecasts, and we lower our 3Q25/4Q25 growth down to +2.5%. We believe this is a solid outcome, particularly given the potential new flight attendant deal that could be signed at the end of the month that we estimated to be about a 100bps headwind on an annualized basis. We think this sets a strong trajectory in 2026, where we forecast +2.5% unit cost growth as well.
Raising 2025 and 2026 EPS estimates:
UAL has a long history of being conservative in its outlook, and the 2Q25 EPS results that beat the midpoint of its guided range despite an approximate $XXXX impact from disruption at Newark is the latest example.
With 2H25 unit cost growth in the X% range and recent green shoots in demand, we raise our 3Q25E EPS by $XXXX to $2.70, which is at the higher end of the $2.25-2.75 guided range while our 2025 EPS goes to $XXXXX from $10.00, also towards the high end of the $9-11 guided range. Our 2026 EPS is raised to $XXXXX from $11.41, which is nearly +20% growth year-over-year.
-- Price Objective Basis:
Our $XXX PO is based on approximately 5.5-6x our 2026E EBITDAR. Our target multiple is in line with UAL's legacy peers. We believe the network carriers can trade towards the high end of their historical valuation ranges (4-6x) given depressed earnings.
-- Upside risks to our price objective are:
Better than expected pricing, a faster than expected resolution of labor contracts, and a stronger macro backdrop.
-- Downside risks to our price objective are:
Higher fuel prices, general economic weakness, government regulation/taxes, safety concerns, and terrorism/geopolitical events."
(Page X is not available here as X does not allow me to post pages from reports on this platform)
XXX engagements
Related Topics united states bank of $ual stocks industrials bank of america stocks financial services stocks banks