American Airlines Group Inc (NASDAQ:AAL) Shares Price Target Boosted By $8
American Airlines Group Inc (NASDAQ:AAL) shares price objective have been revised upwards by $8 from $52 to $60 by S&P Capital IQ analyst Corridore. This implied that the stock offers more than 20 percent upside potentials from the current levels. He also maintained his Buy rating on the stock.
The analyst’s price target is based on an Enterprise value to EBITDAR multiple of 7.6X his 2017 estimate, which is above the rival average of 7X. “We think airline stocks are likely to see multiple expansions due to an improving unit revenue environment,” Corridore wrote to his clients in his research note.
The analyst noted that American Airlines Group reported adjusted earnings of 92 cents a share that topped Capital IQ consensus of 74 cents a share. He attributed it to better than expected revenues. He added in his research note that “Comparisons aided by 19% lower share count due to buybacks. Unit revenues turned positive in Q4, a good sign in our view. “
Following the results, Corridore boosted his 2017 EPS estimate from $4.61 to $4.71 and initiated his EPS view at $5.34 for the year 2018.
At time of writing this, the stock dropped 3.06 percent.