Citi ups American Airlines target, adds to Focus List

Citi raised the firm’s price target on American Airlines (AAL) to $23 from $19 and keeps a Buy rating on the shares. The firm also added the stock to its Focus List. The market does not seem to fully appreciate the view that American “has all the tools it needs to move in the same direction” as Delta (DAL) and United (UAL), the analyst tells investors in a research note. The firm says last week’s co-branded card agreement provided a “strong reminder” of American’s potential. Against this backdrop, the lack of consensus on Buy-rated American’s potential could mean material share price upside from earnings surprises, contends Citi.