© Reuters. Morgan Stanley sees 50% upside for American Airlines (AAL)
American Airlines (NASDAQ:) shares have risen Monday after Morgan Stanley upgraded the stock to Overweight from Equal-Weight in a note, keeping a $20 per share price target on the stock, representing a potential 50% upside.
In a note covering the airline industry, analysts said that after navigating several black swan events and one near-recession in the last four years, US Airlines enter 2024 looking to settle several scores.
Management execution and discipline will be key to driving structural re/de-ratings of stocks, stated the analysts. The investment bank has a preference for premium carriers, with the upgrading of AAL reflecting that view.
AAL’s stock is up 3.9% as of 10:20 am ET on Monday.
“50%+ upside to the stock price is enough to get excited about especially with an upcoming Investor Day serving as a catalyst to frame the narrative that the story has been lacking so far,” said analysts.
“AAL continues to make progress with its balance sheet, and execution post-pandemic has been strong,” they added.
Read the full article here