2 Airline Stocks Boosted By Upgrades

Spirit Airlines received an upgrade following its earnings-related bear gap last week

Managing Editor
Aug 1, 2017 at 10:05 AM
facebook twitter linkedin


Analysts are weighing in on airline stocks American Airlines Group Inc (NASDAQ:AAL) and Spirit Airlines Incorporated (NASDAQ:SAVE), as well as alternative energy name First Solar, Inc. (NASDAQ:FSLR). Here's a quick roundup of today's bullish brokerage notes on shares of AAL, SAVE, and FSLR.

J.P. Morgan Securities Upgrades American Airlines Stock

American Airlines stock is up 2.1% to trade at $51.50, after J.P. Morgan Securities upgraded the airline stock to "overweight" from "neutral," and raised its price target to $61 from $52. AAL stock has tailed off since hitting a two-year high of $54.48 on July 13 -- following reports the company would no longer code share with of Qatar Airways. However, this pullback was contained by its 50-day moving average, a trendline that has served as support from September to January. 

Longer term, AAL shares have tacked on 44% year-over-year, and options traders are pricing in even more gains. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AAL boasts a 10-day call/put volume ratio of 7.54, which is 1 percentage point from a 52-week high.

Analyst Says to Exploit Recent Spirit Airlines Stock Sell-Off

Spirit Airlines stock was crushed last week by earnings and a profit warning. Today, the shares are up 2% at $39.64, after J.P. Morgan Securities upgraded SAVE stock to "overweight" from "neutral," saying "exaggerated equity moves of this magnitude are best exploited." And while the brokerage firm issued a price-target cut to $45 from $56, though this still sits at a premium to current trading levels. With the stock down 34% from its early May highs north of $60, a short-term bounce may have been in the cards. In fact, SAVE's a 14-day Relative Strength Index (RSI) closed last night at 13 -- firmly in "oversold" territory.

First Solar Stock Hits New High

First Solar stock is up 1% at $49.79 -- fresh off a 13-month high of $50.21 -- thanks to a price-target hike to $55 from $40 at Barclays to $55 from $40. It's been an outstanding year for FSLR, stock, which has added 55% year-to-date, and gapped through previous congestion in the $46-$47 region on Friday following an upbeat earnings report. The majority of analysts are still unconvinced, though.   Of the 18 brokerages covering FSLR, 11 rate it a "hold" or "strong sell." Another round of upgrades could boost the solar stock even higher. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners