American Airlines (AAL – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Sheila Kahyaoglu from Jefferies maintained a Buy rating on the stock and has a $20.00 price target.
Sheila Kahyaoglu’s rating is based on a combination of factors that suggest American Airlines’ stock is undervalued and has potential for growth. Despite a recent reduction in revenue projections and earnings per share (EPS) for the first quarter, the stock is trading at a significant discount compared to its historical average and the broader market, which presents an attractive buying opportunity.
Furthermore, while American Airlines has faced challenges such as a mid-air collision and softer domestic leisure demand, these issues are seen as temporary setbacks. The company’s long-term EPS guidance remains intact, and its cost management strategies have been stable, indicating potential for recovery and growth. These elements contribute to the Buy rating, reflecting confidence in the airline’s ability to navigate current challenges and capitalize on future opportunities.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $17.00 price target.
AAL’s price has also changed slightly for the past six months – from $10.770 to $11.460, which is a 6.41% increase.
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