TD Cowen analyst Tom Fitzgerald upgraded American Airlines from hold to buy, raising the stock price target from $17 to $25, which implies a potential 47.3% increase from its recent closing price. This new target is among the highest on Wall Street, contrasting with the hold rating given by most analysts. Fitzgerald believes American Airlines is overcoming prior challenges, noting that consensus estimates for the company may be too low due to anticipated favorable conditions through 2025. He highlighted improved pricing in both Latin American and domestic markets, a rebound in business travel, and stronger airline credit card economics as key positive factors. Fitzgerald characterized American Airlines as a “have” in the airline industry, suggesting it has better prospects compared to its peers. He admitted that his previous upgrade was premature and acknowledged a prior downgrade, but now sees a clearer path to profitability for the airline. With shares rising over 4% in premarket trading and a robust gain of over 26% in 2024, the company is positioned for improved financial health and potential debt reduction as the business landscape becomes more favorable.
