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How Analysts View American Airlines ahead of Q1 Results


Dec. 4 2020, Updated 10:53 a.m. ET

Analysts’ recommendations

American Airlines (AAL), the fourth-largest US air carrier, is expected to report its first-quarter 2019 results on April 24. According to analysts’ ratings, the stock could be an intriguing choice for investors, as they see massive upside potential in American Airlines’ stock price.

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American Airlines stock has received a consensus “buy” rating from the analysts polled by Reuters. Approximately 62% of the analysts have provided a bullish recommendation on American Airlines. Five of the 21 analysts had a “strong buy” recommendation, eight analysts had a “buy” recommendation, and the remaining eight analysts had a “hold” recommendation. Analysts’ target price of $43.39 represents a 30.3% increase from the current price of $33.31.

American Airlines’ strong fourth-quarter results drove the bullish sentiment. The company’s adjusted EPS beat Wall Street’s estimates and marked a significant year-over-year improvement.

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

Peers’ ratings and target prices

Analysts seem to be bullish on the entire airline industry (IYT). Analysts provided a “buy” rating for most of American Airlines’ competitors. The one-year target prices for Spirit Airlines (SAVE), United Airlines (UAL), Southwest Airlines (LUV), and Delta Air Lines (DAL) show potential upsides of 33.6%, 22.3%, 14.2%, and 13.6%, respectively, from their current prices.


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