Yahoo Finance None of the Analysts Offered a “Sell” Rating on American Airlines
American Airlines' 4Q15 Earnings Preview: Revenue Growth in 2016?
Analyst views
Analysts’ recommendations or changes to recommendations can indicate a shift in a company’s long-term trend, and this can have a significant impact on the stock price.
According to Bloomberg consensus, out of the 15 analysts tracking American Airlines (AAL), 53.3% (eight analysts) have a buy recommendation on the stock. Plus, 46.7% (seven analysts) have a “hold” rating, and none of the analysts have a “sell” rating. All analysts maintained their ratings after the 3Q15 earnings results.
Target price
American Airlines’ (AAL) consensus 12-month target price is $55.28, which indicates a 42.2% return potential. J.P. Morgan’s Jamie N. Baker has the highest target price of $66 and has maintained an “overweight rating.”
Daniel McKenzie from Buckingham Research Group has also maintained his “buy” rating, with a $64 price target. Tom Kim from Goldman Sachs and Helane R. Becker of Cowen and Company offered the lowest target prices of $41 and $47, respectively.
American Airlines comprises 5% of the Dynamic Leisure & Entertainment Portfolio ETF (PEJ).
Analyst estimates
American Airlines’ (AAL) sales are expected to decline for the next two quarters and then increase by 1.4% and 2.5% in 3Q16 and 4Q16, respectively. For 2016, analysts estimate sales to stay almost flat at $40.9 billion, compared to a 4% decline expected for 2015. EBITDA is expected to grow by 8% to $9,193 million.
You can also check analysts’ estimates for Delta Air Lines (DAL), Alaska Air Group (ALK), and Southwest Airlines (LUV).
In the next few articles, we will discuss what led to these estimates, helping investors judge whether analysts are being optimistic or conservative on the stock. We will also help you understand what may be priced into the stock.
Browse this series on Market Realist:
