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UBS Initiates American Airlines(AAL.US) With Hold Rating, Announces Target Price $16

Moomoo News ·  Nov 26 18:34  · Ratings

UBS analyst Thomas Wadewitz initiates coverage on $American Airlines (AAL.US)$ with a hold rating, and sets the target price at $16.

According to TipRanks data, the analyst has a success rate of 55.4% and a total average return of 8.4% over the past year.

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Furthermore, according to the comprehensive report, the opinions of $American Airlines (AAL.US)$'s main analysts recently are as follows:

  • American Airlines' future Q4 results and 2025 guidance are anticipated to demonstrate significant improvements in high-quality revenue streams, including premium cabin services, loyalty programs, and co-branded cards. Current market levels indicate some skepticism regarding these potential enhancements, but these forthcoming results could dispel these doubts.

  • The balance of supply and demand is considered a pivotal influence on airline RASM growth and margin performance. A forecasted deceleration in supply growth, from 5%-6% in the first half of 2024 to 1%-2% in the latter half, is anticipated to advance the equilibrium between supply and demand. This adjustment is expected to result in stronger RASM growth and enhanced margins in 2025. Meanwhile, diminished pretax margin performance remains a challenge to cash generation and further investment in capacity.

Note:

TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.

Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.

TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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