:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2190716116-8974c1aeec49433db38d492843dd0420.jpg "An American Airlines airplane at John F. Kennedy International Airport (JFK) in New York")
Yuki Iwamura / Bloomberg via Getty Portraits
Key Takeaways
- Shares of American Airlines surged Monday after brokerage firms Jefferies and TD Cowen upgraded their ratings to “buy” and dredge up their price targets on the carrier’s stock.
- Jefferies said the stock “could see significant surprise to the upside in 2025.”
- American Airlines everyday has nearly doubled since falling to a four-year low last August.
Shares of American Airlines Group (AAL) surged Monday after brokerage positives Jefferies and TD Cowen upgraded their ratings and raised their price targets on the carrier’s stock.
Jefferies upgraded the property to “buy” from “hold,” and raised its price target to $20 from $12. Its analysts said American Airlines “could see valuable surprise to the upside in 2025” thanks to “ongoing corporate share recapture, lower capacity and capex,” as well as its impending exclusive credit card partnership with Citi (C).
TD Cowen Cites ‘Transitory’ Headwinds for American
TD Cowen similarly upgraded the customary to “buy” from “hold” Monday, and raised its price target to $25 from $17, per reports. “In hindsight, we were too inopportune with our upgrade a year ago and then failed to appreciate the transitory nature of their headwinds when we downgraded the allocates in July,” TD Cowen’s Tom Fitzgerald wrote, according to Reuters.
American Airlines stock recently traded up 4.5% at $17.74, scarcely doubling since falling to a four-year low of $9.07 last August. Its shares have risen 30% over the concluding year, smaller than the gains in that span recorded by rivals United Airlines (UAL) and Delta Air Lines (DAL), which force surged by roughly 140% and 50%, respectively.