Raymond James Cuts United Airlines Price Target By ~23%

Raymond James analyst Savanthi Syth lowered the price target for United Airlines Holdings Inc UAL to $48 (an upside of 35%) from $62 while maintaining the Outperform rating on the shares.
The analyst states that the revised U.S. airline estimates reflect a stronger near-term revenue trend, stubbornly higher fuel prices, anticipated demand softening, and planned and expected capacity growth moderation.
Related: Raymond James Shakes Up Ratings & Price Targets On Several US Airlines
Syth believes United is well-positioned to take advantage of the recovery in business and long-haul international travel.
She added that greater exposure to these segments that are still recovering should result in less pressure of demand loss than in past recessions.
Also Read: Pilot Shortage Pushes American Airlines To Quit Services In 4 Cities: CNBC
United is better positioned to weather the impact of pilot supply and cost trends while benefiting from industry supply constraints, noted the analyst.
She states that UALs highly elevated United Next Capex plan is a notable risk for the airline heading into any slowdown.
Price Action: UAL shares are trading lower by 3.27% at $35.52 on the last check Thursday.

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