United Airlines Holdings Inc. (NASDAQ:UAL) stock reached an unprecedented altitude this week, hitting an all-time high of $101.96. With a market capitalization of $32.64 billion and a P/E ratio of 11.74, InvestingPro analysis suggests the stock is currently trading above its Fair Value. This milestone marks a significant turnaround for the airline, which has seen its share price climb an impressive 142.49% over the past year. The surge to record levels reflects investor confidence in the company's recovery trajectory, supported by robust annual revenue of $55.99 billion. The travel industry rebounds from the pandemic's impact, and United Airlines' performance is a testament to the sector's resilience and the airline's strategic initiatives to capitalize on the resurgence of global travel demand. Discover 12 additional exclusive InvestingPro Tips and comprehensive analysis in our Pro Research Report, helping investors make informed decisions in this dynamic market.
In other recent news, United Airlines Holdings has been the focus of several analyst updates. Citi has increased its price target for the company, maintaining a Buy rating due to the airline's promising revenue growth potential. TD Cowen also showed confidence in United, raising its price target and keeping a Buy rating, noting the airline's strategic investments in its network and fleet. Goldman Sachs upgraded United Continental shares to Buy, forecasting the airline's return to pre-pandemic margin levels by the end of 2024. Seaport Global Securities also raised their price target for the company, maintaining a Buy rating while highlighting the airline industry's potential for margin expansion.
These developments come as United Airlines reported a 2.5% year-over-year increase in revenue for the third quarter of 2024, reaching $14.8 billion. The company also initiated a $1.5 billion share repurchase program. Looking forward, United Airlines projects Q4 earnings per share between $2.50 and $3 and anticipates a double-digit pre-tax margin by 2026.
Meanwhile, the US Transportation Department is considering a proposal that would mandate airlines to compensate passengers with at least $200 in cash if they are stranded due to issues within the airline's control. This proposal is part of a broader initiative aimed at enhancing consumer protection for travelers. These are some of the recent developments for United Airlines Holdings.
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