United Airlines (NASDAQ:UAL) news for Thursday includes an updated rating for the company.
The new rating for United Airlines comes from Evercore ISI. In the note, the company increases its rating for UAL stock from the previous “In-Line” to a new rating of “Outperform.”
The positive United Airlines news doesn’t stop with an upgrade. Evercore ISI also gives the stock a new price target. This new price target is $125 per share, which is a 19.05% increase over the previous price target of $105 per share. It’s also 41.90% higher than the stock’s previous closing price of $88.09.
It’s interesting to note that the Evercore ISI price target for United Airlines is well above the average sell-side price target of $108.58 from other analysts. To go along with that, the firm is expecting great things from a company that has never seen its stock trade above $100 per share.
So why exactly does Evercore ISI have such a bullish take on United Airlines? There’s are a couple of reasons. The first is that it says that the stock’s valuation is discounted when compared to its competitors. The firm also notes that it has the “cleanest capital structure” of companies in its sector, reports CNBC.
While the new rating and price target is great United Airlines news, it isn’t sending the stock soaring today. UAL stock was only up 1.35% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
