Seeking Alpha

American Airlines Group still a Buy at Goldman

  • Goldman Sachs reiterates its Buy rating on American Airlines Group (AAL).
  • The investment firm lifts its price target on the carrier to $50.
  • Yesterday, American gave a positive read on PRASM for April and May.
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Comments (9)
  • JosephCortes
    , contributor
    Comments (438) | Send Message
     
    Kudos for Goldman Saach,
    but we already know that.
    Long on AAL.
    10 Jun, 09:36 AM Reply Like
  • markcc
    , contributor
    Comments (1165) | Send Message
     
    American is on a roll. This is not the old American as the guys in charge are the low cost guys from America West. If they and the unions don't blow it, there is a good future for the New American.
    10 Jun, 09:37 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5619) | Send Message
     
    Wonder what (AAL)'s peak will be....$100 a share?
    10 Jun, 03:24 PM Reply Like
  • markcc
    , contributor
    Comments (1165) | Send Message
     
    Michael, I usually don't comment on pricing, but here are some statistics to consider when doing that $100 per share projection. Not including regionals, AAL has 978 planes for a market cap of $31.4B, or about $32 million per plane. DAL has 753 planes for a market cap of $35.5B, or about $47 million per plane. UAL is horrible with 709 planes and a market cap of $17.3B, or about $24.4 million per plane. Finally, LUV has 684 planes for a market cap of $19B, or about $27.8 million per plane. Can American get to Delta's market cap per plane? I think it has a good chance. That would push it up about 10-15% from here. Can it get much farther? The whole industry is moving forward together as prices and routes firm up. From the current price that $100 per share price is a long way off and probably out of sight for now.
    10 Jun, 04:25 PM Reply Like
  • JosephCortes
    , contributor
    Comments (438) | Send Message
     
    $100?.... well, eventually. But I do see $74.00 by the end of this year.
    10 Jun, 06:38 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5619) | Send Message
     
    (AAL) had $108/share in revenue in the past year. Interesting way of looking at it, markcc. That means (UAL) is the most undervalued.
    10 Jun, 08:41 PM Reply Like
  • markcc
    , contributor
    Comments (1165) | Send Message
     
    Hi Michael, if United knew how to use its assets well, they would be in the pack. They don't, so they won't. Also the JetBlue number is low too. A workout company could take their numbers higher with a buyout.
    11 Jun, 07:53 AM Reply Like
  • Jedi057
    , contributor
    Comments (3) | Send Message
     
    At least $60 by 8/15.... I work for this company....and know what they have done to the employee wages and overall cost structure since BK
    10 Jun, 09:52 PM Reply Like
  • UMCane9536
    , contributor
    Comment (1) | Send Message
     
    $100 per share for AAL? look at AlaskaAir sitting at $96 plus. ALK EPS is at $8, for a 12 to 1 P/E ratio. AAL is projected by most pundits to reach EPS of $5 plus by end of 2014, $6 EPS by end of 2015. That would put the stock price at $60 (Jim Cramer's call also) by end of this year, $72 plus by end of 2015. With good Parker management providing a tailwing, stock should be in the 80's by 2016, approaching the magic $100 number sometime in 2017, or within 3 years. ALK and AAL are different, routewise and sizewise but the cold numbers tell you the story.
    11 Jun, 09:23 PM Reply Like
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