Why Is American Airlines Stock Falling Premarket Today?

Raymond James analysts reportedly viewed peer Alaska Air with more favorable competitive trends.

American Airlines (AAL) stock slipped 1.1% in premarket trading on Monday after Raymond James downgraded the stock to ‘Market Perform’ from ‘Outperform.’

According to The Fly, the brokerage reportedly did not set a new price target but cited the stock’s valuation as the reason for the downgrade. According to Fiscal.ai data, the stock has a consensus price target of $13.31.

Raymond James analysts reportedly saw a more balanced risk/reward as the stock approaches its prior $14 price target. The brokerage also viewed peer Alaska Air with more favorable competitive trends.

Retail sentiment on Stocktwits about American Airlines was in the ‘bearish’ territory at the time of writing.

American Airlines had topped second-quarter profit estimates in July but had issued a cautious third-quarter outlook, which had disappointed investors.

For the third quarter, the company projected an adjusted loss per share between $0.10 and $0.60, compared with an estimated loss of $0.01.

In April, major airlines in the United States had withdrawn annual expectations for the year, as the tariff war had resulted in economic uncertainty and a decline in consumer confidence during the first half of the year. However, some of American Airlines’ peers had issued a more bullish outlook.

The index for airline fares increased by 4% in July, after declining 0.1% in June, according to data from the Bureau of Labor Statistics.

American Airlines' stock has fallen 22% this year.

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