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.
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.