American Airlines Stock Surges On TD Cowen Raising Price Target To $25: Retail Sentiment Flies High

Shares of American Airlines Group Inc (AAL) surged over 4% on Monday after TD Cowen reportedly upgraded the stock while raising the price target by $8. Other analysts have also upgraded the stock.

According to a CNBC report, TD Cowen analyst Tom Fitzgerald upgraded the shares to ‘Buy’ from ‘Hold’ while raising the price target to $25, a new high on Wall Street. This implies over 38% upside from the stock’s current level.

The analyst believes American Airlines has emerged from transitory 2024 challenges. “We view consensus estimates as too low given tailwinds and favorable comps through 2025,” he reportedly wrote in a note to clients.

The tailwinds include improved pricing in the Latin American and domestic markets, a return of business travel, and better economics from airline credit cards.

Following the upgrade and the price-target hike, retail sentiment on Stocktwits climbed into the ‘bullish’ territory (59/100) from ‘bearish’ a day ago.

AAL’s Sentiment Meter and Message Volume as of 11:27 a.m. ET on Jan. 6, 2025 | Source: Stocktwits

Apart from TD Cowen, multiple analysts upgraded the stock. According to TheFly, Melius has issued its third upgrade on the shares. The brokerage upgraded American Airlines stock to ‘Buy’ from ‘Hold’ while raising the price target to $23 from $18.

Jefferies, too, upgraded the stock to ‘Buy’ from ‘Hold’ while raising the price target to $20 from $12. The analyst noted that the firm's 2025 earnings per share (EPS) estimate of $2.55 is 14% above the Street, led by higher total revenue per seat mile (TRASMs), according to TheFly.

Although retail investors took note of the upgrades, chatter on the platform indicated mixed views on the stock.

Notably, shares of American Airlines have gained over 21% over the last year.

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