United Airlines Holdings Inc (UAL) said earlier this week that it had ordered 50 A321XLR jets from Airbus SE for routes between the US East Coast and Europe.
The long-range A321XLR jets are to replace the air carrier’s fleet of 53 Boeing 757-200 aircraft as early as 2024.
United Air shares closed lower for a fourth consecutive trading session on NASDAQ on Wednesday. The stock went down 0.79% ($0.70) to $88.17, after touching an intraday low at $88.15, or a price level not seen since October 15th ($86.68).
Shares of United Airlines Holdings Inc have risen 5.30% so far in 2019 compared with a 24.17% gain for the benchmark index, S&P 500 (SPX).
In 2018, United Air’s stock went up 24.23%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
United Airlines said that, among other benefits, Airbus A321XLR is 30% more efficient in terms of fuel burn per seat compared to preceding generation of jets.
United’s fleet of Boeing 757 jets are due to reach the end of their lifespan in ten years. Boeing Co has already discontinued production of this large single-aisle model and has been considering a new twin-aisle jet, known as the NMA. The plane maker is expected to announce the launch of the new jet at some point during 2020.
Analyst stock price forecast and recommendation
According to CNN Money, the 17 analysts, offering 12-month forecasts regarding United Air’s stock price, have a median target of $108.00, with a high estimate of $140.00 and a low estimate of $95.00. The median estimate represents a 22.49% upside compared to the closing price of $88.17 on December 4th.
The same media also reported that at least 13 out of 21 surveyed investment analysts had rated United Air’s stock as “Buy”, while 7 – as “Hold”.
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