Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Raymond (NSE:RYMD) James has reiterated its Outperform rating and $14.00 price target on American Airlines (NASDAQ:AAL) stock, citing an encouraging demand inflection and favorable supply-demand outlook. The airline, currently trading at $11.46 with a market capitalization of $7.56 billion, appears undervalued according to InvestingPro analysis.
The firm had expressed caution heading into earnings season but noted that recent weeks have confirmed a positive demand trend. Despite this improvement, Raymond James acknowledged that some airlines, including American, have a history of conservative guidance. This cautious outlook comes as seven analysts have revised their earnings estimates upward for the upcoming period, according to InvestingPro data.
Raymond James believes the upper half of American Airlines’ fourth-quarter 2025 guidance is achievable, which would lead to a strong earnings recovery as the company moves into 2026.
The firm maintains its positive outlook on American Airlines due to what it considers an attractive risk-reward profile, supported by specific earnings drivers expected to materialize in 2026.
These drivers include the airline’s potential to regain lost corporate market share and improve economics from its co-branded credit card programs in the coming year.
In other recent news, American Airlines reported its second-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.95, compared to the anticipated $0.78. The company also announced record revenue of $14.4 billion, slightly above the forecasts. Despite these positive financial results, investor sentiment remained cautious, attributed to operational challenges and market uncertainties. The stock experienced a decline in pre-market trading, though specific price movements are not the focus here. These developments highlight the ongoing complexities American Airlines faces in balancing strong financial performance with external pressures. Analyst firms have not provided any upgrades or downgrades in response to these earnings. The company’s ability to surpass earnings expectations indicates robust financial management amidst challenging conditions. These recent developments are crucial for investors to consider as they assess American Airlines’ current and future positioning in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.