United Airlines upgraded to Buy from Neutral at UBS

UBS upgraded United Airlines (UAL) to Buy from Neutral with a price target of $105, up from $67. Recent tariff relief due to the 90 day agreement with China and framework with the UK support a shift in a base case from a downturn in the economy to stability and slow growth, the analyst tells investors in a research note. UBS says a more stable economic backdrop and the recent rebound in the U.S. equity market give it increased confidence in the resilience of international and premium revenue which had been its primary cyclical concern for both Delta and United. The firm now expects pressure on total revenue per available seat mile to ease and transition to 3% TRASM growth in 2026. A more favorable revenue backdrop is a key lever for earnings and upside for both airlines, UBS contends.