Goldman Sachs analyst Catherine O’Brien downgraded American Airlines (AAL) to Sell from Neutral with a price target of $8, down from $16. The firm says the company’s higher balance sheet leverage and operating leverage drive significantly larger estimate cuts relative to peers amid increased macroeconomic and geopolitical uncertainty. As profitability across the industry and at American is negatively impacted by lower demand, Goldman is now forecasting lower free cash flow, the analyst tells investors in a research note.
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