American Airlines Is 'A Guide And Beat Story,' Analyst Says As Stock Gets Upgrade

American Airlines Group Inc AAL reported a steep 75% decline in adjusted earnings to 29 cents per share for the fourth quarter, but still managed to beat the consensus estimate.

The results came amid an exciting earnings season.

Here are some key analyst takeaways from the release.

Check out other analyst stock ratings.

Seaport Research Partners On American Airlines: Analyst Daniel McKenzie upgraded the rating from Neutral to Buy, while maintaining a price target of $23

The company has a “compelling earnings trajectory” ahead, as the industry's supply-demand equilibrium both domestically and internationally “have swung hard in AAL's favor for as far as we can see,” McKenzie said in the upgrade note.

“A digital transformation which is gaining traction and which has been partially quantified by mgmt, but on our outlook, is worth hundreds of millions in pre-tax profits given the revenue and cost opportunities,” the analyst wrote. He added that believe American Airlines is likely to be a “guide and beat story in 2024.”

Evercore ISI: Analyst Duane Pfennigwerth maintained an In-Line rating and price target of $17.

American Airlines reported an earnings beat on the back of lower non-fuel costs, Pfennigwerth said in a note.

“Company sees domestic as the biggest opportunity for y/y unit revenue improvement,” the analyst wrote. “FY24 total CapEx expected to be modest ~$3.2b, with expected sequential aircraft CapEx of ~$3.2b,” he added.

AAL Price Action: Shares of Intel had declined by 1.40% to $15.14 at the time of publication Friday.

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