Hudson Securities Reports On 1Q11 Results For AMR

According to Hudson Securities, AMR Corp AMR 1Q11 betters street. Hudson Securities said that AMR mgmt reports improving revenue health (domestically and internationally) in its cornerstone markets, aided by several recent industry pricing actions. “No change to estimates. Updating for 1Q11A, our FY2011 now goes to -$1.85 (vs prior -$1.90). Our small full year earnings revision is insufficient to drive a change to our $8 PT (based on AMR's EV trading at 8.0x our 2011E EBITDAR). Our Neutral rating, which is temporarily misaligned with the upside to our PT, is tied to poor profit visibility given revenue risk associated with AMR's network restructuring and cost risks associated with open labor contracts that could be resolved in 1H11. Shares likely remain under pressure near-term, however, for those with longer-term patience and a stomach for a volatile ride, shares are more likely to climb to $8 than $3.” AMR Corp closed yesterday at $5.64.