Overview
- TD Cowen on Mar. 9 kept a Buy rating but reduced its United price target to $128 from $140 and slashed its Q1 adjusted EPS forecast to $0.05–$0.22 from $1.00–$1.50.
- Jet fuel prices jumped about 15% in the week to Mar. 6, intensifying a cost squeeze that United estimates changes by roughly $116 million for each $1 move in jet fuel.
- United shares fell roughly 4.5% on Mar. 6, while American, Delta and Southwest declined 3%–5% as investors reacted to fuel inflation and conflict-related risks.
- Scott Kirby said the escalation linked to Iran would have a meaningful impact on Q1 results with possible spillover into Q2 if the conflict continues.
- Rothschild & Co. Redburn cut its United target to $110 on Mar. 5, and industry reports cited more than 20,000 flight cancellations during the crisis.