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American Airlines: Analysts Have a Bullish Stance


Mar. 29 2019, Published 8:05 a.m. ET

Analysts’ bullish stance

With a market capitalization of $13.9 billion, American Airlines (AAL) is the fourth-largest airline company in the United States. The stock could be an intriguing choice for investors, according to analysts’ ratings. Wall Street analysts expect a massive upside in American Airlines’ share price.

Analysts have provided a consensus “buy” rating on the stock. Approximately 60% of the analysts have provided a bullish recommendation on American Airlines. Five of the 20 analysts had a “strong buy” recommendation, seven analysts had a “buy” recommendation, and eight analysts had a “hold” recommendation. Analysts’ target price of $45.01 represents a 45.7% increase from the current price of $30.90.

American Airlines’ strong fourth-quarter earnings results have driven the bullish sentiment. The company’s adjusted EPS beat analysts’ estimates and marked a significant year-over-year improvement.

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Going forward, analysts think that American Airlines will continue to benefit from a healthy travel demand environment. The company’s cost-control measures and fleet transformation initiatives are expected to drive its bottom-line results. Analysts also expect lower fuel prices to help the company’s margins in upcoming quarters.

Peers’ ratings and target prices

Analysts appear to be bullish on the entire airline industry (IYT). Analysts provided a “buy” recommendation for most of American Airlines’ peers. The one-year target prices for Delta Air Lines (DAL), United Airlines (UAL), Spirit Airlines (SAVE), and Southwest Airlines (LUV) show potential upsides of 22.7%, 32.3%, 45.9%, and 19.5%, respectively, from their current prices.


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