Raymond James warns on American Airlines Group

• American Airlines Group (AAL -2.3%) is lower after Raymond James downgrades the airline stock to Market Perform from Outperform.
• The RJ team cites valuation concerns on American in comparison to peers (AAL trades at 8.2X FY17 estimates vs 6.8X for DAL and 7.6X for UAL).
• A new mechanics contract is seen nipping at American's profit in the short term, while debt repayment costs, higher pension payments, and a lower level of buyback activity are seen as long-term drags.