Rothschild Redburn downgrades American Airlines stock rating on fuel costs
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Oil prices add to gains as Middle East war escalates; supply fears mount Futures lower, oil rises amid Iran conflict - what’s moving markets Iran conflict latest: Hegseth says Iran conflict has "only just begun" Gold hands back gains as US dollar rebounds; Middle East war continues (South Africa Philippines Nigeria) Rothschild Redburn downgrades American Airlines stock rating on fuel costs By Analyst Ratings Published 03/05/2026, 04:36 AM Rothschild Redburn downgrades American Airlines stock rating on fuel costs 0 LUV -1.26% UAL -2.01% AAL 0.00% AZUL53 -0.59% Investing.com - Rothschild Redburn downgraded American Airlines Group Inc. (NASDAQ:AAL) to Neutral from Buy and lowered its price target to $12.50 from $17.00. The stock currently trades at $12.46, down 11% over the past week and 19% year-to-date. The firm cited the airline’s significant exposure to jet fuel prices as a primary concern. American Airlines faces additional pressures from overcapacity in Chicago and some Middle East exposure this year. The company’s financial challenges are compounded by its $36.9 billion debt burden and a current ratio of just 0.5, indicating short-term obligations exceed liquid assets—an InvestingPro Tip that highlights liquidity concerns. Rothschild Redburn now forecasts negative earnings per share for the current year. The firm expects some easing of jet fuel prices next year, which would lead to a strong rebound in profitability and cash generation, though its forecasts remain below consensus. The firm’s forecasts imply the shares trade at 5.7 times fiscal year 2027 price-to-earnings ratio. The updated forecasts also project negative free cash flow for the current year. Rothschild Redburn identified macroeconomic factors, including jet fuel prices and demand changes, as key risks to both the upside and downside. Despite these headwinds, InvestingPro analysis suggests the stock appears undervalued at current levels base...
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