Broker Roundup: Analysts Weigh In on Apple Inc. (AAPL) and American Airlines Group Inc (AAL)


Analysts are weighing in today on the technology giant Apple Inc. (NASDAQ:AAPL) and domestic airline giant American Airlines Group Inc (NASDAQ:AAL). Here’s a quick roundup of today’s bullish brokerage notes on AAPL and AAL.

Apple Inc.

RBC Capital analyst Amit Daryanani reiterated an Outperform rating on shares of Apple, while reducing the price target to $130 (from $140), to reflect incremental softness in iPhone demand and recent production cuts.

Daryanani commented, “Our sense is that iPhones are likely sitting at higher than optimal inventory across multiple geographies, and as a result, AAPL has implemented further production curtailment across the supply chain. While we recognize that the “noise” surrounding AAPL will keep the stock range-bound until we are done with Mar-qtr, we maintain our Outperform rating on AAPL, as we expect demand to recover and y/y growth to resume in Jun-qtr (accelerating) in H2:16. At current levels (~8x FTM P/E ex-cash), we believe Apple remains an attractive asset to own for CY16 especially, as we get beyond Mar-qtr guide.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amit Daryanani has a yearly average return of -0.3% and a 46.8% success rate. Daryanani has a 9% average return when recommending AAPL, and is ranked #2386 out of 3630 analysts.

Out of the 51 analysts polled by TipRanks, 37 rate Apple stock a Buy, 12 rate the stock a Hold and 2 recommend a Sell. With a return potential of 48%, the stock’s consensus target price stands at $146.09.

American Airlines Group Inc

Credit Suisse analyst Julie Yates upgraded shares of American Airlines from a Neutral to an Outperform rating, and raised the price target to $57 (from $52), as she sees more favorable risk/reward in 2016 than 2015.

Yates stated, “Integration challenges are largely behind & AAL might have the most control of pricing in 2016 following aggressive actions in 2015 & forthcoming IT upgrades. Competitive capacity trends are moderating, expectations are low, & the buyback is sizeable. We downgraded AAL in Jan’15 to Neutral and it was our least preferred network carrier in 2015 on competitive capacity trends, PRASM underperformance, integration risk & higher leverage/lower FCF. We are less worried about higher leverage/lower FCF given ample liquidity, low fuel & since capex has now peaked; if the bull case plays out, we don’t see these as impediments to 2016 outperformance for the stock esp. with the sizeable buyback likely to continue. LatAm remains a risk, but this is well understood and lower relative Asia exposure could be an advantage given economic concerns and ongoing competitive capacity challenges. AAL has the best EU exposure with a dominant LHR position.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Julie Yates has a yearly average return of 4.9% and a 48.4% success rate. Yates has a 9.1% average return when recommending AAL, and is ranked #1000 out of 3630 analysts.

Out of the 16 analysts polled by TipRanks, 9 rate American Airlines Group Inc stock a Buy, while 7 rate the stock a Hold. With a return potential of 35%, the stock’s consensus target price stands at $54.73.