Analysts at Citi cut their price target on American Airlines Group Inc. (AA) to $11 a share, from $14, incorporating second-quarter results and "weaker expected unit economics as higher capacity combines with a softer, near-term booking curve." The airline's "substantial" debt load compared with peers "and the lower visibility on its post-COVID-19 earnings stream seems to make the stock's forward P/E valuation a little harder to defend," the analysts, led by Stephen Trent, said in a note late Monday. American reported slightly better-than-expected second-quarter results last week, with revenue down 86% ( air travel ground to a standstill amid the coronavirus pandemic. Shares of American Airlines are down 60% this year, contrasting with gains around 7% for the Dow Jones Industrial Average and breakeven for the S&P 500 index.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 28, 2020 11:18 ET (15:18 GMT)
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