CFRA Keeps Hold Opinion On Shares Of United Airlines Holdings, Inc.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $47, up $6, is 5.1x our 2024 EPS estimate (remains at $9.13; 2023 remains at $9.87), below UAL’s 2018-2019 historical forward average of 8.4x. We believe a discount is merited due to the recent events regarding the Boeing 737 Max-9 aircraft, as the Federal Aviation Administration (FAA) grounded 171 737 Max-9 planes due to increased quality control concerns that arose after a panel blew off an Alaska Air Group (ALK 37 ***) operated flight last Friday. The 737 Max-9 series aircraft currently accounts for roughly, by our estimation, 6% of UAL’s current fleet. In addition, UAL currently has almost 50% of its expected aircraft order book tied to the 737 Max series; however, we believe that the lion’s share of its 737 Max series orders are tied to the 737 Max-8 variety. On Monday, UAL announced that it did have to cancel 200 Max-9 flights. That said, we believe that UAL should be able to switch some flights to other aircraft, which should ease further cancellation pains.

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