Turbulent Outlook For American Airlines: Analysts Cut Forecasts As Competitive Pressures Mount
Portfolio Pulse from Lekha Gupta
American Airlines Group Inc. (NASDAQ:AAL) shares are trading lower after the company lowered its second-quarter adjusted EPS guidance and analysts cut the price target. The company also announced the departure of its Chief Commercial Officer. Analysts from BofA Securities, Seaport Research Partners, and Jefferies have downgraded the stock and lowered their price targets. Investors can gain exposure to the stock via U.S. Global Jets ETF (NYSE:JETS) and Themes Airlines ETF (NASDAQ:AIRL).
May 29, 2024 | 7:30 pm
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NEGATIVE IMPACT
American Airlines lowered its Q2 adjusted EPS guidance and announced the departure of its Chief Commercial Officer. Analysts from BofA Securities, Seaport Research Partners, and Jefferies downgraded the stock and cut price targets.
The lowered EPS guidance and the departure of a key executive signal potential operational challenges. Multiple analysts downgrading the stock and cutting price targets further indicate a negative outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Themes Airlines ETF, which includes American Airlines, may experience a negative impact due to the lowered guidance and analyst downgrades of AAL.
Given that AIRL includes American Airlines, the negative developments for AAL are likely to impact the ETF's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
U.S. Global Jets ETF, which includes American Airlines, may see a negative impact due to the lowered guidance and analyst downgrades of AAL.
As JETS includes American Airlines, the negative news surrounding AAL is likely to affect the ETF's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50