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
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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.



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