American Airlines, Sirius XM, TransDigm Downgraded

American Airlines, Sirius XM, TransDigm received bearish analyst attention ahead of today's open

Mar 22, 2017 at 10:10 AM
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Analysts are weighing in on airline stock American Airlines Group Inc (NASDAQ:AAL), satellite radio provider Sirius XM Holdings Inc. (NASDAQ:SIRI), and aircraft component manufacturer TransDigm Group Incorporated (NYSE:TDG). Here's a quick roundup of today's bearish brokerage notes on AAL, SIRI, and TDG shares.

Morgan Stanley Downgrades Airline Stocks

Morgan Stanley is weighing in bearishly on airline stocks, reducing its outlook on the sector to "in-line" from "attractive," with the brokerage expecting lower margins across the industry. For AAL in particular, Morgan Stanley dropped its rating to "equal weight" from "overweight," and cut its price target to $44 from $52, due to margin, leverage, and cash flow concerns. Shares of American Airlines Group Inc have struggled in recent weeks, and are now off another 2.5% today at $39.41, putting them on pace for their first close below the 200-day moving average since late September. Still, half of covering brokerage firms maintain a "strong buy" recommendation, so there's potential for additional downgrades

Short Sellers Take Aim at Sirius XM Stock

SIRI shares are also pulling back today, last seen off 1.3% at $5.12, after Barclays downgraded the stock to "equal weight" from "overweight." Of course, Sirius XM Holdings Inc. remains 32.6% higher year-over-year, touching a nearly 11-year high of $5.53 earlier this month. Short interest on SIRI stock has been shooting upward, though, up 11.3% in the last reporting period. These bears now control over two weeks' worth of buying power, based on the stock's average daily volumes. 

TransDigm Falls Further After Downgrade

Cowen and Company this morning downgraded TDG to "market perform" from "outperform," while cutting its price target to $219 from $270. At last check, TransDigm Group Incorporated was down 2.7% at $218.70. While the stock remains higher on a year-over-year basis, it's far removed from its record high of $277.33 from November. TDG stock is in danger of another round of bearish brokerage attention, too. Nine of 11 analysts say the shares are a "buy" or "strong buy," while zero consider them a "sell."

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