American Airlines Set to Release Q4 Earnings on January 27
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Expectations: American Airlines is set to announce its Q4 earnings on January 27, with the Street expecting an EPS of $0.35, reflecting a 59.3% year-over-year decline, while revenue is projected at $14.03 billion, growing 2.4%, indicating a slowdown in growth.
- Rating Upgrade: Susquehanna Financial has upgraded American Airlines' rating from neutral to positive, believing that its revenue growth initiatives, such as enhancing premium products and a new Citi co-brand deal, will support margin improvement into FY27.
- Debt Management: Analyst Pure Analytics has rated the stock as 'Buy', highlighting proactive debt reduction and margin-accretive strategies that will support free cash flow and multiple expansion, with AAL trading at an 8.38x EV/EBITDA, approximately 29% below the peer average.
- Price Target: Analysts suggest a stock price target of around $50, indicating a potential upside of approximately 233% from current levels, as debt reduction and premiumization strategies drive valuation re-rating.
Analyst Views on AAL
Wall Street analysts forecast AAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAL is 17.44 USD with a low forecast of 10.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 14.670
Low
10.00
Averages
17.44
High
21.00
Current: 14.670
Low
10.00
Averages
17.44
High
21.00
About AAL
American Airlines Group Inc. is a holding company. Its primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways, including in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo, among others. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle. Its cargo division provides a wide range of freight and mail services, with facilities and interline connections available across the globe. It operates approximately 977 mainline aircraft supported by its regional airline subsidiaries and third-party regional carriers, which together operate an additional 585 regional aircraft. Its subsidiaries include American Airlines, Inc., Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
