In a report released today, Andrew Didora from Bank of America Securities maintained a Hold rating on American Airlines (AAL – Research Report), with a price target of $12.00.
Andrew Didora’s rating is based on American Airlines’ recent financial performance and future outlook. The company reported a first-quarter earnings per share that exceeded its revised expectations, but its guidance for the second quarter fell short of consensus estimates. This cautious outlook is compounded by the withdrawal of its 2025 guidance, indicating uncertainty in its future performance.
Additionally, American Airlines’ projected revenue growth for the second quarter is expected to be weak, with a potential decline at the midpoint. While the company is making efforts to regain its historical share of indirect channel revenue, challenges remain, particularly in corporate travel demand. The unit cost outlook aligns with expectations, but the overall financial environment, including significant debt levels, contributes to the Hold rating. Despite these challenges, the company’s unchanged capital expenditure targets and plans to reduce debt by 2027 provide some stability, justifying the neutral stance.
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.