American Airlines Stock Soars Following Multiple Upgrades from Analysts
American Airlines shares are climbing after three Wall Street upgrades, driven by strong traffic and a lucrative credit card deal with Citigroup
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New York: American Airlines is on fire right now! The stock jumped after getting three upgrades from Wall Street analysts. It’s been a good run for the airline lately.
Analysts from Jefferies, TD Cowen, and Melius Research all decided to raise their ratings on the airline from hold to buy. They’re seeing a boost in both domestic and corporate travel, plus that new credit card deal with Citigroup is a big win.
One analyst even mentioned that this credit card agreement could bring in over $560 million in extra revenue by 2025. That’s some serious cash! And on top of that, American is working hard to get back its share of the corporate travel market.
As of early afternoon trading, the stock was up 5.1%. It’s been on a roll, climbing more than 50% in just three months. This surge is partly due to fewer short bets against the stock, which are now at their lowest since April.
Even with this recent success, some folks are still cautious. American had some trouble predicting domestic demand last year, so there are still 11 holds and two sells among the ratings. But the overall sentiment is improving, with the stock’s consensus rating at its highest since early 2020.
One analyst believes there’s still a lot of potential for investors. He thinks that as American improves, they’ll be able to pay down debt, and shareholders will see their value increase too. Sounds promising, right?
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