AAL was overdue for upgrades to end 2024
American Airlines Group Inc (NASDAQ:AAL) stock is up 4.5% to trade at $17.72 this morning, after TD Cowen and Jefferies both issued upgrades to "buy," with respective price-target hikes to $25 and $20, from $17 and $12. Both brokerages expressed optimism that the company can rejoin the "Big 3" (alongside Delta Air Lines (DAL) and United Airlines (UAL)) of airline carriers, thanks to a rebuilt sales strategy.
AAL is a chip shot from its Dec. 10 two-year high of $18.20. Since that peak, the shares have consolidated around $17, with their 100-day moving average catching last week's pullback. Year-over-year, the equity is now 30.3% higher.
There was upgrade potential to end 2024, and there still is even amid today's news. The stock's consensus 12-month price target of $18.70 is only a 5.4% premium to its current perch, while 11 of the 19 brokerages still maintain "hold" or worse ratings.
There's a heavy call bias among options traders. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AAL's 10-day call/put volume ratio of 6.48 sits higher than 98% other readings from the past year.