BUY, SELL, HOLD (2)

2 Airline Stocks Enjoying Upgrades Today

UBS is bullish on United and Delta

Managing Editor
May 19, 2025 at 10:37 AM
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Airline stocks United Airlines Holdings Inc (NASDAQ:UAL) and Delta Air Lines Inc (NYSE:DAL) are both brushing off broad market weakness today. UBS upgraded both airliners to "buy" from "neutral," with price-target hikes to $105 and $96, respectively. 

UAL is up 1.2% to trade at $79.08, but remains down 18.5% in 2025. The shares tested and were rejected by their 80-day moving average last week, but are still up 14% this quarter alone. 

DAL is only 0.5% higher to trade at $51.16, with a similar technical setup as United. The shares are down 15% year-to-date, were rejected by their overhead 80-day moving average last week, but have gained 17% this quarter.

There's not much in contrarian potential for both stocks. There's not a single sell rating on both securities, while short squeeze potential has been wrung out. 

The similarities don't end there. Both UAL and DAL options are affordably priced, per their respective Schaeffer's Volatility Indexes (SVI) that rank in their respective 16th and 15th percentile of their annual range. Plus, with Schaeffer's Volatility Scorecards (SVS) at 95 and 99, both United and Delta have a history of exceeding option trader's volatility expectations during the past year. 

 

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