Imperial Capital Raises Price Target on American Airlines (AAL) Following 3Q EPS Beat

October 21, 2016 7:45 AM EDT
Get Alerts AAL Hot Sheet
Price: $49.64 +3.31%

Rating Summary:
    10 Buy, 6 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
Trade AAL Now!
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

Imperial Capital reiterated an In-Line rating on American Airlines (NASDAQ: AAL), and raised the price target to $43.00 (from $40.00), following the company's 3Q earnings report. AAL reported EPS of $1.76, versus estimates of $1.65. The beat was driven by a better than anticipated RASM which declined 2.2% versus expectations for a decline of 4.0%. AAL expects November 2016 to January 2017 domestic RASM to be flat to modestly higher based on current booking trends, confirming commentary by its Big 3 peers.

Analyst Michael Derchin commented, "We are maintaining our In-Line rating and lowering our estimates on higher labor and fuel costs, but increasing our one-year price target on AAL shares to $43 from $40 on higher valuations due to improving unit revenue trends. We now estimate FY17 RASM will increase by 1.0% versus a decline of 1.0% previously. Our price target is about 6% above the recent share price. We are lowering our 4Q16 EPS estimate to $0.63 from $0.85, our FY16 estimate to $5.47 from $5.55, our FY17 EPS estimate to $4.78 from $4.90, and our FY18 estimate to $5.42 from $5.47."

For an analyst ratings summary and ratings history on American Airlines click here. For more ratings news on American Airlines click here.

Shares of American Airlines closed at $40.59 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Earnings, Imperial Capital

Add Your Comment