Positive Medium-Term Outlook for American Airlines Despite Short-Term Challenges

Citi analyst Stephen Trent maintained a Buy rating on American Airlines (AAL – Research Report) yesterday and set a price target of $21.50.

Stephen Trent has given his Buy rating due to a combination of factors that suggest a positive medium-term outlook for American Airlines. Despite a weaker first-quarter revenue guide, which reflects domestic demand softness and external challenges like tariff uncertainties and weather events, the airline’s premium international long-haul and loyalty revenues remain strong.
Trent highlights American Airlines’ strategic initiatives, such as re-engaging corporate customers and maintaining low re-fleeting requirements, as key strengths. Additionally, the expectation of robust co-branded card remuneration by 2026 supports a favorable view. Although the stock has seen a short-term decline, leading to its removal from Citi’s Focus List, the anticipated 72% share price return underpins the Buy rating.

In another report released today, Bernstein also maintained a Buy rating on the stock with a $17.00 price target.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AAL in relation to earlier this year.