American Airlines (AAL) has an average 1-year price target of $13.47, with an 8.36% upside from the current price of $12.44. The average brokerage recommendation is 2.4, indicating "Outperform" status. The estimated GF Value for AAL in one year is $16.54, suggesting a 33.01% upside from the current price.
American Airlines (AAL) has been a subject of interest for investors, given its recent performance and analyst recommendations. Based on the provided data, here's a detailed analysis of the stock's potential.
Analyst Price Targets and Recommendations
Wall Street analysts have set an average one-year price target of $13.47 for AAL, which represents an 8.36% upside from the current price of $12.44 [1]. The high estimate of $20.00 and the low estimate of $8.00 provide a wide range for potential future performance. The average brokerage recommendation of 2.4 indicates an "Outperform" status, suggesting that analysts are bullish on the stock's prospects [1].
GuruFocus Estimates
GuruFocus estimates the GF Value for AAL at $16.54 for one year from now, which implies a 33.01% upside from the current price of $12.4352 [1]. This valuation takes into account historical multiples and future performance estimates, offering a robust assessment of the stock's potential.
Recent Performance and Earnings Outlook
AAL closed the most recent trading day at $12.45, up 1.47% from the previous session. Over the last month, the stock has seen a 15.97% increase, outperforming the broader market [2]. The upcoming earnings release on July 24, 2025, is expected to report an EPS of $0.79, down 27.52% from the prior year's quarter, and revenue of $14.29 billion, down 0.32% [2].
Valuation Metrics
AAL is currently trading at a Forward P/E ratio of 16.89, which is a premium compared to the industry average of 10.09. The PEG ratio of 1.81 also indicates that the stock is more expensive relative to its expected earnings growth rate compared to the industry average of 0.88 [2].
Conclusion
American Airlines (AAL) presents an intriguing investment opportunity with a positive outlook from analysts. The combination of price targets, brokerage recommendations, and valuation metrics suggests a potential for significant upside in the coming year. However, investors should closely monitor the upcoming earnings report and any changes in analyst estimates to stay informed about the stock's performance.
References
[1] https://www.gurufocus.com/news/2988346/american-airlines-aal-key-insights-for-investors-aal-stock-news
[2] https://www.nasdaq.com/articles/american-airlines-aal-outperforms-broader-market-what-you-need-know
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