Shares of American Airlines Group Inc. AAL,
It rose 3.3% in pre-market trading on Monday, after Raymond analyst James Savanthi Syth moved away from its bearish stance on the airline, citing a more balanced risk-reward scenario after the recent liquidation. . Syth raised its rating to market performance, after being underperforming since June 5. The stock was down 44% from its June 8 recovery peak of $ 20.31 through Friday, while the USF Global Jets ETF JETS,
It has fallen 27% over the same time. “Our view continues to be that bankruptcy is not on the cards for Americans in 2020, with Chapter 11 only as a potential avenue if the recovery in profits is halted for several years,” Syth wrote in a note to clients. Syth said that while the risk-reward scenario is more balanced, American is “the least attractive” of US airlines given the “materially higher debt burden,” which could leave American’s balance sheet “paralyzed for years to come. ” To date, American shares have plummeted 59%, while the ETF Jets have lost 49% and the S&P 500 SPX,
It is up 0.1%. (This corrects an earlier element regarding the analyst’s identity.)
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