Following closely on the heels of extremely strong results from significant competitors Delta Air Lines (NYSE:DAL) and United Airlines, American Airlines stock (NASDAQ:AAL) is preparing for its earnings announcement on Thursday.
Investors will be interested to learn how the airline is able to maintain demand in the wake of those peer reports and rising macroeconomic pressures and airfares. This is especially true now that Ed Bastian, CEO of Delta, has praised the consumers’ sustained strength and growing desire for new experiences. The entire airline sector is now more upbeat thanks to United Airlines (NASDAQ:UAL) predictions for continuing growth through 2023.
As a result of comments made by its rivals regarding strong demand, the shares of the Texas-based air carriers have increased by double digits in the week before earnings. Estimates for consensus earnings per share and revenue are $0.56 and $13.46 billion, respectively. The carrier has consistently outperformed EPS forecasts, missing revenue forecasts just once in the past eight quarters. The opinions of analysts on Wall Street on the carrier’s American Airlines stock forecast are very split
Expert Opinions on American Airlines Stock Forecast
The sustained decreases in aircraft fuel prices since their summer peak and the positive TSA data, according to Morgan Stanley, could “provide the overall industry’s 4Q projection a substantial sequential tailwind.” Ravi Shanker, an analyst at the bank, noted that increases in operational reliability among the majors should support shares through the end of the year and even into 2023. American Airlines (NASDAQ:AAL) is projected to profit from these general tailwinds as well, of course.
JP Morgan issued a Street-high $24 price objective on the company, indicating that it would almost double in value over the following 12 months. However, considering that the airline’s “revenue narrative has been third best” after Delta and United, the analysts expressed some lessened confidence in the company ahead of earnings. Although Morgan Stanley conceded that demand would return quickly, its analysts said they believe America Airline stock prices have “greater upside throughout our covering universe.” The stock was assigned a “Neutral” rating as a result, despite the high price objective.
In a more pessimistic assessment, Bank of America analyst Andrew Didora gave America Airline stock a Sell-equivalent rating because less sequential improvement is anticipated from it than from Delta, which could result in disappointment. In comparison to United or Delta, he continued, Americans are adding less capacity. JP Morgan’s $8 price estimate for the stock compares considerably with Didora’s $7 price target, which is a Street low.
Even with the current rise, which was preceded by a roughly 2% rise at the start of trading on Wednesday, shares have dropped more than 25% since the beginning of 2022. This decrease has exceeded that of several of its US domestic competitors.
What You Need To Know About The Falling American Airlines Stock (AAL) Despite Market Gains
Featured Image- Megapixl @ NycRuss
Author Jowi Kwasu 
