ALK and AAL both just received "buy" recommendations
Alaska Air Group, Inc. (NYSE:ALK) and American Airlines Group Inc (NASDAQ:AAL) are in focus today, after Goldman Sachs initiated coverage on the stocks with "buy" ratings and respective price targets of $81 and $44. The brokerage firm is bullish in general on shares of U.S. airlines, as it sees strong revenue trends and an industry focus on cost control.
The bull note hasn't helped ALK stock today, which was last seen down slightly at $65.93. The shares have moved past their 80-day moving average, but now the 320-day moving average could be acting as a ceiling again, as it did back in late September. At current levels, the security is down roughly 10% this year.
Most other analysts are already bullish on the equity, with eight of 14 brokerage firms recommending it as a "buy." Moreover, the average 12-month price target of $76.67 stands in territory not charted in over a year.
Turning to AAL, the shares are up 1.8% at $36.87, but are struggling to overcome their 50-day moving average, which has acted as both resistance and support this year. The stock has been in an unrelenting downtrend in 2018, falling from a January perch around $58 to an October low of $30.24.
The sentiment among analysts is very bullish on American Airlines, too. Fourteen of the 16 analysts have "buy" or better ratings in place, and the average 12-month price target of $47.56 is almost 29% above current levels.