2 Airline Stocks Boosted By Upgrades

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

Patrick Martin
Aug 1, 2017 at 10:05 AM
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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. 


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