NEW YORK (TheStreet) -- Shares of American Airlines Group (AAL) are surging, up 3.59% to $51.43 in midday trading Friday, continuing its gain after airline stocks hit their highest levels in almost 14 years yesterday, following higher earnings estimates for the carriers by JPMorgan Chase analysts, Bloomberg reports.
Analysts at the firm said they believe shares of U.S. airline carriers are undervalued.
JPMorgan Chase increased its price targets on six U.S. airlines, including American Airlines. The firm raised its target for the Fort Worth, TX-based carrier to $80.50 from $64.50.
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The firm added that investors haven't boosted airline stocks commensurately with the "precipitous" decline in fuel prices, noting that domestic fares are higher and transatlantic capacity hasn't gone up as expected.