American Airlines: Jefferies downgrades stock

(CercleFinance.com) - Jefferies downgrades its recommendation on American Airlines from 'buy' to 'hold', with a price target reduced from $17 to $12, the day after the company announced an 18% reduction in expected second-quarter EPS and the departure of its chief commercial officer.


"Guidance held on as long as it could, but it's clear AAL's LT strategy will take some time to execute", the broker summarises.

While it points to cost management as a strong point, Jefferies sees revenues lagging behind its peers in 2024, particularly given a more difficult-than-expected segment capacity of the short-haul network.


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