In a report released yesterday, Thomas Fitzgerald CFA from TD Cowen maintained a Buy rating on American Airlines (AAL – Research Report), with a price target of $13.00.
Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors including American Airlines’ recent financial performance and strategic initiatives. The airline reported a better-than-expected first-quarter adjusted EPS, which, despite being a loss, was smaller than both the firm’s and consensus estimates. This indicates a positive trajectory in financial performance.
Additionally, American Airlines is experiencing strong demand in international and premium travel segments, as well as growth in loyalty and co-brand spending. The management’s optimism regarding corporate demand, along with their strategic efforts to recapture corporate travel bookings, further supports the Buy rating. The company’s guidance for the second quarter and its potential for profitability in FY25, assuming demand stabilizes, also contribute to the positive outlook.