American Airlines Group Inc (AAL)

[rockland2u]

CFRA RAISES OPINION ON SHARES OF AMERICAN AIRLINES GROUP TO STRONG BUY FROM BUY

10:20 am ET June 22, 2017 (CFRA) Print
We raise our 12-month target to $65 from $52, valuing the shares at an Enterprise Value to EBITDAR multiple of 7.7X our '17 estimate, above the peer average of about 7X. We raise our '17 and '18 EPS estimates to $4.88 and $5.58 from $4.40 and $5.00, on improved pricing and recent decline in oil. In a regulatory filing, Qatar Airways said it is seeking to buy 808 mil. AAL shares (10% of outstanding shares), which would make it one of AAL's largest holders. While foreign entities can only own only up to 24.9% of a U.S. airline, we think this news provides major share support.