Boston, MA 07/04/2014 (wallstreetpr) – American Airlines Group Inc (NASDAQ:AAL) is receiving favorable comments from Wall Street thanks to its management team that continues to inspire investor confidence.
According analysts at Imperial Capital, shares of the company will rise to $55 apiece in one-year view. The analysts previous had a price target of $46 on the stock. The new price target suggests about 25 percent premium on the recent price of the stock. In addition to raise their price target on American Airlines (NASDAQ:AAL), the analysts also maintained an Outperform rating on the stock.
At least 12 analysts have recently commented on the stock of American Airlines Group Inc (NASDAQ:AAL), of which two consider it a Hold, and 10 consider it a Buy. As such, the stock carries a consensus Buy rating and an average one-year price target of $46.45.
Besides Imperial Capital, other prominent rating firms bullish on the stock are Raymond James and Goldman Sachs Group Inc (NYSE:GS), which have ratings and price targets of Outperform at $52 and Buy at $50, respectively.
Merger integration
The new management team at American Airlines Group Inc (NASDAQ:AAL) is making exciting moves towards integrating the merger of American Airlines and US Airways. Although the integration process is still far from being completed, the new management team has already moved to put in place code-sharing while also aligning travel policies.
Additionally, the management has also taken a number of steps towards improving efficiency, passenger experience and revenue generation.
As such, the management has not only indicated its ability to improve performance in the company, but also to exceed the expectation of investors. Therefore, American Airlines Group Inc (NASDAQ:AAL) stands a chance to realize operating results beyond the stated guidance.
Engine acquisition
American Airlines Group Inc (NASDAQ:AAL) has placed a firm order for CFM engines of which the carrier is prepared to spend $2.6 billion in the fuel efficient jet engines from CFM International.
Looking at the merger integration and push towards efficiency, there is no doubt that the company is on the right track to deliver the promise to the shareholders.
