American Airlines (NASDAQ:AAL) gained in pre-market trading after top-rated Citi analyst Stephen Trent upgraded AAL to a Buy from a Hold and raised the price target to $20 from $14. The analyst’s price target implies an upside potential of 32.2% at current levels.
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Trent cited the airline’s diversified revenue streams and strong demand for its premium cabin services, giving it an advantage in the post-pandemic era. The analyst remained optimistic about American Airlines’ focus on reducing debt and its low capex. He also expects the airline major’s industry-wide capacity constraints to sustain its stock performance.
AAL had delivered better-than-expected results in the fourth quarter.
What Is the Future of AAL Stock?
Analysts remain cautiously optimistic about AAL stock with a Moderate Buy consensus rating based on eight Buys, four Holds, and two Sells. Over the past year, AAL has slid by more than 5%, and the average AAL price target of $17.29 implies an upside potential of 14.3% at current levels.
