American Airlines shares offer attractive opportunity, says Imperial Capital
Imperial Capital analyst Michael Derchin lowered his price target for American Airlines to $42 from $45 after the company yesterday indicated that Q4 unit revenues are likely to be at the low end of previous guidance due to difficult comparisons and fares increasing at a slower rate than expected. However, the shares "present an attractive opportunity with valuations reflecting low expectations and upside potential on unit revenues," Derchin tells investors in a research note. He believes current share valuations and unit revenue estimates are likely underestimating American's potential upside. As such, the analyst keeps an Outperform rating on American Airlines.