American Airlines Group(AAL:NSD) Citigroup lowers the target price to $16

STA Research
by: STA Research
American Airlines Group

Citigroup maintains American Airlines Group with a Neutral rating and lowers the target price to $16 from $16.75 on the company’s stock.

Based on the American Airlines Group stock forecasts from 13 analysts, the average analyst target price for American Airlines Group is USD 18.70 over the next 12 months. American Airlines Group’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of American Airlines Group is Bearish, which is based on 3 positive signals and 8 negative signals. At the last closing, American Airlines Group’s stock price was USD 14.08American Airlines Group’s stock price has changed by -1.19% over the past week, +7.98% over the past month and -34.21% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

Disclaimer

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