Opinions Stuart Hinshelwood
American Airlines GroupAALCOMMENTFeb 18, 2014
Stock price when the opinion was issued
As of May 29, 2026. Market Open.
You might be interested:
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentOur PAST TOP PICK with AAL has triggered its stop at $13. To remain disciplined we recommend covering the position at this time. This will result in a net investment loss of 10%, when combined with our previous buy recommendation.
Premium contentWe reiterate AAL following the recent release of earnings, which showed cash reserves growing, while debt is aggressively retired. Analysts expect EPS growth this upcoming year of 180% as travel demand continues to grow. We continue to recommend a stop at $13.00, looking to achieve $17.50 -- upside potential of 18%. Yield 0%
(Analysts’ price target is $17.50)Premium contentPent up traveler demand allowed AAL recently reported earnings to almost quadruple expectations - topping expectations for six consecutive quarters. It trades at 12x and cash reserves are growing again as debt is aggressively retired. We recommend setting a stop-loss at $13, looking to achieve $17 -- upside potential of 21%. Yield 0%
(Analysts’ price target is $16.93)
Bank of America reports there's an 8% increase in travel vs. 2019 (not 2020 during Covid). This trend will benefit American Airlines and Delta (his favourite airline), especially when international travel returns. True, shares have run up, but he feels there's still plenty of runway left.
It's moved up too much and had to do an equity raise. Doesn't know how much money they're losing. Buy Boeing instead.
An $11 stock, but he prefers LUV because it doesn't lose money and has a better long-term outlook.
Feels there is a trading catalyst to own an airline here. There has been some consolidation in this space. Traditionally these are not well run businesses but there is less capacity now, fuel is moving up and surcharges can be passed on. If they can manage those earnings and can guide the street conservatively, a case could be made for them. If you start to see passenger trends roll over, it would probably be time to sell.