American Airlines (AAL) Stock Falls, Cowen Raises Price Target
NEW YORK (TheStreet) -- Shares of American Airlines Group (AAL) - Get Report are down 1.39% to $35.85 this morning as analysts at Cowen up their price target on the stock to $43 from $42 in a note cited by Barron's.
The firm said that American Airlines is not being hurt as much as other large industry carriers like Delta Air Lines (DAL) and United Continental (UAL) from competition with lower-cost carriers.
"American arguably has the most overlap with low-cost carriers; however, the LCCs are no longer growing in America's markets," Cowen added.
Last year American said that it would compete "aggressively" with low-cost carriers on fares. Their actions have been successful, and yields "do not seem likely" to drop any lower.
"It is not that American is immune to the industry's yield issues, it is that they have already dealt with those issues," the firm said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a hold with a ratings score of C-.
The company's strengths can be seen in multiple areas, such as its notable return on equity and good cash flow from operations. However, TheStreet Ratings finds weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: AAL