American Airlines assumed with Buy from Neutral at UBS

UBS analyst Atul Maheswari upgraded American Airlines (AAL) to Buy from Neutral with a price target of $20, up from $14, after assuming coverage of the name. The market is not fully appreciating American’s opportunity to “meaningfully expand” profits over the next few years as its corporate revenues recover, the analyst tells investors in a research note. The firm sees the company’s loyalty income expanding and says it will capitalize on the structural tailwinds to network players.