Imperial Capital Upgrades American Airlines (AAL) to Outperform

June 1, 2018 4:59 AM EDT
Get Alerts AAL Hot Sheet
Price: $16.26 -2.93%

Rating Summary:
    8 Buy, 17 Hold, 6 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 4 | Down: 15 | New: 18
Trade Now! 
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Imperial Capital upgraded American Airlines (NASDAQ: AAL) from In-Line to Outperform with a price target of $46.00 (from $49.00).

Analyst Mike Derchin comments "We expect AAL to announce capacity reductions for the post labor day shoulder period by its July earnings call due to: 1) higher fuel prices pressuring pre-margins, given AAL is 100% unhedged, 2) weaker demand in the off-peak periods with capacity reductions likely to improve AAL’s pricing power, in our view, and 3) management bonuses tied to AAL reaching at least $3bn in pre-tax income, which we now estimate AAL to reach assuming it reduces post-labor day capacity. We now estimate AAL limits capacity growth to 1% in FY19, consistent with FY17 levels."

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 $43.54 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst PT Change, Hot Upgrades, Upgrades

Related Entities

Earnings, Imperial Capital