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Deutsche Bank Downgrades Big Three Airlines (AAL) (DAL) (UAL)

April 1, 2015 6:41 AM EDT
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Price: $43.44 --0%

Rating Summary:
    26 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 7 | New: 39
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Deutsche Bank downgraded American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and United Airlines (NYSE: UAL) from Buy to Hold with a price target of $58 (from $78), $50 (from $60) and $70 (from $85), respectively.

Analyst Michael Lindenberg commented, "We are lowering our ratings on the shares of AAL, DAL, and UAL (i.e. the Big Three) from Buy to Hold as we think that int'l sales will be a source of earnings disappointment for the next few quarters. The combination of a strong US dollar, greater-than-expected capacity increases by non-US airlines, and decelerating global GDP growth are likely to further pressure our -5% int'l PRASM forecast for 2015. However, we do believe that airlines will be quick to utilize their sizable share repurchase authorizations in response to any stock price weakness. The net effect, in our view, is that AAL, DAL, and UAL shares will be range-bound in the near-term, hence, our Hold rating."

For an analyst ratings summary and ratings history on Delta Air Lines click here. For more ratings news on Delta Air Lines click here.

Shares of Delta Air Lines closed at $44.96 yesterday.



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