AMR Co. (NYSE: AMR), United Continental (NYSE: UAL), Nuveen PA Investment Quality Municipal Fund (NYSE: NQP), Spirit Airlines Incorporated (NASDAQ: SAVE), Allegiant Travel (NASDAQ: ALGT) and Alaska Air (NYSE: ALK) getting new coverage from analysts.
Maxim Group initiated coverage on AMR Co. (AMR). They placed a “Hold” rating on the company.
Maxim Group initiated coverage on United Continental (NYSE: UAL). They placed a “Buy” rating and a price target of $28.00 on the company.
Stifel Nicolaus initiated coverage on Nuveen PA Investment Quality Municipal Fund (NQP). They placed a “Hold” rating on the company.
Maxim Group initiated coverage on Spirit Airlines Incorporated (SAVE) is now covered by analysts at . They placed a “Buy” rating and a price target of $20.00 on the company.
Maxim Group initiated coverage on Allegiant Travel (ALGT). They placed a “Buy” rating and a price target of $60.00 on the company.
Maxim Group initiated coverage on Alaska Air (ALK). They placed a “Buy” rating and a price target of $86.00 on the company.
Showing posts with label AMR Corp. Show all posts
Showing posts with label AMR Corp. Show all posts
Tuesday, November 15, 2011
Tuesday, August 30, 2011
Barnes (B) (AMR) (ORLY) (GVA) (ICE) Upgraded
Barnes Group Inc. (NYSE: B), AMR Co. (NYSE: AMR), O’Reilly Automotive, Inc. (NASDAQ: ORLY), Granite Construction Inc. (NYSE: GVA) and IntercontinentalExchange (NYSE: ICE) upgraded by analysts.
Barnes Group Inc. (B) was upgraded by BB&T (NYSE:BBT) from a “Hold” rating to a “Buy” rating.
AMR Co. (AMR) was upgraded by Ticonderoga Securities from a “Sell” rating to a “Neutral” rating. They cited valuation as the catalyst behind the call.
O’Reilly Automotive, Inc. (ORLY) was upgraded by ISI Group to a “Hold” rating.
Granite Construction Inc. (GVA) was upgraded by BB&T from a “Hold” rating to a “Buy” rating.
IntercontinentalExchange (ICE) was upgraded by Credit Agricole from an “Underperform” rating to an “Outperform” rating.
Barnes Group Inc. (B) was upgraded by BB&T (NYSE:BBT) from a “Hold” rating to a “Buy” rating.
AMR Co. (AMR) was upgraded by Ticonderoga Securities from a “Sell” rating to a “Neutral” rating. They cited valuation as the catalyst behind the call.
O’Reilly Automotive, Inc. (ORLY) was upgraded by ISI Group to a “Hold” rating.
Granite Construction Inc. (GVA) was upgraded by BB&T from a “Hold” rating to a “Buy” rating.
IntercontinentalExchange (ICE) was upgraded by Credit Agricole from an “Underperform” rating to an “Outperform” rating.
Monday, August 29, 2011
Baidu (BIDU) (AMR) (ORLY) (RHI) (Z) Get Upgrades, Downgrades
Baidu (NASDAQ:BIDU), AMR (NYSE:AMR), O'Reilly Automotive (NASDAQ: ORLY), Robert Half International (NYSE: RHI) and Zillow (NASDAQ:Z) get new upgrades and downgrades from analysts.
O'Reilly Automotive (ORLY) was upgraded by ISI Group from a "Sell" rating to a "Hold" rating. They have a price target of $64 on the company.
AMR (AMR) was upgraded by Ticonderoga Securities from a "Sell" to "Neutral" rating. They cited valuation as the catalyst behind the call.
Baidu (BIDU) was upgraded by Credit Suisse (NYSE:CS) from an "Underperform" to a "Neutral" rating. They have a price target of $135.50 on the company.
Robert Half International (RHI) was downgraded by Citigroup (NYSE:C) from a "Buy" rating to a "Hold" rating. They cut their price target from $40 to $25 on the company.
Citigroup initiated coverage on Zillow (Z). They started them with a "Buy" rating and a price target of $36.
O'Reilly Automotive (ORLY) was upgraded by ISI Group from a "Sell" rating to a "Hold" rating. They have a price target of $64 on the company.
AMR (AMR) was upgraded by Ticonderoga Securities from a "Sell" to "Neutral" rating. They cited valuation as the catalyst behind the call.
Baidu (BIDU) was upgraded by Credit Suisse (NYSE:CS) from an "Underperform" to a "Neutral" rating. They have a price target of $135.50 on the company.
Robert Half International (RHI) was downgraded by Citigroup (NYSE:C) from a "Buy" rating to a "Hold" rating. They cut their price target from $40 to $25 on the company.
Citigroup initiated coverage on Zillow (Z). They started them with a "Buy" rating and a price target of $36.
Thursday, August 4, 2011
Diodes (DIOD) (EXAS) (ADI) (AGP) (ALL) (AMR) Downgraded
Diodes (NASDAQ: DIOD), EXACT Sciences Co. (NASDAQ: EXAS), Analog Devices, Inc. (NYSE: ADI), AMERIGROUP Co. (NYSE: AGP), Allstate (NYSE: ALL) and AMR Corp. (NYSE: AMR) downgraded by analysts.
Diodes (DIOD) was downgraded by Sterne Agee from a “Buy” rating to a “Neutral” rating.
EXACT Sciences Co. (EXAS) was downgraded by Rodman & Renshaw from an “Outperform” rating to a “Market Perform” rating.
Analog Devices, Inc. (ADI) was downgraded by Sterne Agee from a “Buy” rating to a “Neutral” rating.
AMERIGROUP Co. (AGP) was downgraded by Bank of America (NYSE:BAC) from a “Buy” rating to an “Underperform” rating. They have a price target of $46.00 on the company.
Allstate (ALL) was downgraded by Goldman Sachs (NYSE:GS) from a “Neutral” rating to a “Sell” rating.
AMR Co. (AMR) was downgraded by JPMorgan Chase & Co. (NYSE:JPM) from an “Overweight” rating to a “Neutral” rating.
Diodes (DIOD) was downgraded by Sterne Agee from a “Buy” rating to a “Neutral” rating.
EXACT Sciences Co. (EXAS) was downgraded by Rodman & Renshaw from an “Outperform” rating to a “Market Perform” rating.
Analog Devices, Inc. (ADI) was downgraded by Sterne Agee from a “Buy” rating to a “Neutral” rating.
AMERIGROUP Co. (AGP) was downgraded by Bank of America (NYSE:BAC) from a “Buy” rating to an “Underperform” rating. They have a price target of $46.00 on the company.
Allstate (ALL) was downgraded by Goldman Sachs (NYSE:GS) from a “Neutral” rating to a “Sell” rating.
AMR Co. (AMR) was downgraded by JPMorgan Chase & Co. (NYSE:JPM) from an “Overweight” rating to a “Neutral” rating.
Saturday, May 21, 2011
Price Targets (A) (AIMC) (ALK) (AMR) (AMRN) Weekly Recap
Price targets on shares of Agilent Technologies Inc. (NYSE: A), Altra Holdings, Inc. (NASDAQ: AIMC), Alaska Air (NYSE: ALK), AMR Co. (NYSE: AMR) and Amarin Co. plc (NASDAQ: AMRN) upgraded by analysts during the last week.
Longbow Research raised their price target on Agilent Technologies Inc. (NYSE: A) from $52.00 to $62.00. They have a “buy” rating on the company.
Jefferies (NYSE:JEF) raised their price target on Altra Holdings, Inc. (AIMC) from $29.00 to $31.00. They have a “buy” rating on the company.
JPMorgan Chase & Co. (NYSE:JPM) raised their price target on Alaska Air (NYSE: ALK) from $64.00 to $66.00.
JPMorgan Chase & Co. raised their price target on AMR Co. (AMR) from $8.50 to $9.50.
Jeffries raised their price target on Amarin Co. plc (AMRN) from $21.00 to $25.00.
Longbow Research raised their price target on Agilent Technologies Inc. (NYSE: A) from $52.00 to $62.00. They have a “buy” rating on the company.
Jefferies (NYSE:JEF) raised their price target on Altra Holdings, Inc. (AIMC) from $29.00 to $31.00. They have a “buy” rating on the company.
JPMorgan Chase & Co. (NYSE:JPM) raised their price target on Alaska Air (NYSE: ALK) from $64.00 to $66.00.
JPMorgan Chase & Co. raised their price target on AMR Co. (AMR) from $8.50 to $9.50.
Jeffries raised their price target on Amarin Co. plc (AMRN) from $21.00 to $25.00.
Monday, May 16, 2011
Ratings on (AAV) (ACN) (AEO) (AMR) (ASCA) Upgraded
Ratings on Advantage Oil & Gas Ltd. (NYSE: AAV), Accenture Plc (NYSE: ACN), American Eagle (NYSE: AEO), AMR Co. (NYSE: AMR) and Ameristar Casinos (NASDAQ: ASCA) were upgraded by analysts.
TD Newcrest upgraded Advantage Oil & Gas Ltd. (AAV) from a “hold” rating to a “buy” rating.
UBS AG (NYSE:UBS) upgraded Accenture Plc (ACN) from a “neutral” rating to a “buy” rating. They have a price target of $63.00 on the company, up from $54.00.
Susquehanna upgraded American Eagle (AEO) from a “neutral” rating to a “positive” rating.
JPMorgan Chase & Co. (NYSE:JPM) upgraded AMR Co. (AMR) from a “neutral” rating to an “overweight” rating.
Jefferies (NYSE:JEF) upgraded Ameristar Casinos (ASCA) from a “hold” rating to a “buy” rating.
TD Newcrest upgraded Advantage Oil & Gas Ltd. (AAV) from a “hold” rating to a “buy” rating.
UBS AG (NYSE:UBS) upgraded Accenture Plc (ACN) from a “neutral” rating to a “buy” rating. They have a price target of $63.00 on the company, up from $54.00.
Susquehanna upgraded American Eagle (AEO) from a “neutral” rating to a “positive” rating.
JPMorgan Chase & Co. (NYSE:JPM) upgraded AMR Co. (AMR) from a “neutral” rating to an “overweight” rating.
Jefferies (NYSE:JEF) upgraded Ameristar Casinos (ASCA) from a “hold” rating to a “buy” rating.
Price Targets on (A) (AIMC) (ALK) (AMR) (AMRN) Updated
Price targets on Agilent Technologies Inc. (NYSE: A), Altra Holdings, Inc. (NASDAQ: AIMC), Alaska Air (NYSE: ALK), AMR Co. (NYSE: AMR) and Amarin Co. plc (NASDAQ: AMRN) were updated by analysts.
Longbow Research raised their price target on Agilent Technologies Inc. (A) from $52.00 to $62.00. They have a “buy” rating on the company.
Jefferies (NYSE:JEF) raised their price target on Altra Holdings, Inc. (AIMC) from $29.00 to $31.00. They have a “buy” rating on the company.
JPMorgan Chase & Co. (NYSE:JPM) raised their price target on Alaska Air (ALK) from $64.00 to $66.00.
JPMorgan Chase & Co. raised their price target on AMR Co. (AMR) from $8.50 to $9.50.
Jeffries raised their price target on Amarin Co. plc (AMRN) from $21.00 to $25.00.
Longbow Research raised their price target on Agilent Technologies Inc. (A) from $52.00 to $62.00. They have a “buy” rating on the company.
Jefferies (NYSE:JEF) raised their price target on Altra Holdings, Inc. (AIMC) from $29.00 to $31.00. They have a “buy” rating on the company.
JPMorgan Chase & Co. (NYSE:JPM) raised their price target on Alaska Air (ALK) from $64.00 to $66.00.
JPMorgan Chase & Co. raised their price target on AMR Co. (AMR) from $8.50 to $9.50.
Jeffries raised their price target on Amarin Co. plc (AMRN) from $21.00 to $25.00.
Wednesday, April 27, 2011
Delta (DEL) (LCC) (UAL) (AMR) Lose Over $1 Billion in First Quarter
Delta Air Lines Inc. (NYSE:DEL), US Airways (NYSE:LCC), United Continental Holdings Inc. (NYSE:UAL) and AMR Corp. (NYSE:AMR) lose over $1 billion combined in first quarter. Southwest Airlines (NYSE:LUV) was able to generate a small $5 million profit.
Oddly enough, shares of the companies jumped after earnings reports Tuesday, as results were expected to be even worse than that. Delta ended up losing $318 million, according to its Tuesday report. US Airways Group lost $114 in the quarter.
The vast majority of the blame for the dismal performance of the industry is the surge in the costs of jet fuel in the quarter. Even after numerous fare increases, Delta said it only covered about 70 percent increase in fuel prices.
Overall, losses in the quarter for the four companies came in a $100 million more than last year. Fuel spending soared to almost $1.9 billion, an increase of 28 percent.
The major way to deal with the challenges by the airlines is to cut back on flights and park some planes, which they are all doing.
AMR closed Tuesday at $5.74, gaining $0.17, or 3.05 percent. United Continental ended the day at $22.58, up $0.55, or 2.50 percent. US Airways closed the session at $8.80, rising $0.52, or 6.28 percent. Delta closed at $9.99, soaring $0.99, or 11 percent.
Oddly enough, shares of the companies jumped after earnings reports Tuesday, as results were expected to be even worse than that. Delta ended up losing $318 million, according to its Tuesday report. US Airways Group lost $114 in the quarter.
The vast majority of the blame for the dismal performance of the industry is the surge in the costs of jet fuel in the quarter. Even after numerous fare increases, Delta said it only covered about 70 percent increase in fuel prices.
Overall, losses in the quarter for the four companies came in a $100 million more than last year. Fuel spending soared to almost $1.9 billion, an increase of 28 percent.
The major way to deal with the challenges by the airlines is to cut back on flights and park some planes, which they are all doing.
AMR closed Tuesday at $5.74, gaining $0.17, or 3.05 percent. United Continental ended the day at $22.58, up $0.55, or 2.50 percent. US Airways closed the session at $8.80, rising $0.52, or 6.28 percent. Delta closed at $9.99, soaring $0.99, or 11 percent.
Thursday, April 21, 2011
No Earnings Love for Southwest (LUV)
Southwest Airlines (NYSE:LUV) got no love today from its earnings report, as the company reported net income in the first quarter below analysts’ estimates.
Net income for Southwest Airlines dropped to $5 million, or 1 cent a share, against $11 million or 1 cent a share last year in the same quarter, a drop of 54.5 percent.
Revenue for the quarter jumpted to $3.1 billion, an 18 percent boost.
Analysts on average had been looking for a gain of 3 cents a share.
Chairman, CEO and President Gary C. Kelly, said, “While escalating jet fuel prices and inclement weather challenged our first quarter profitability, our people prevailed.”
The airline's major competitors include Alaska Air (NYSE:ALK), AMR Corporation (NYSE:AMR), Delta Air Lines(NYSE:DAL), United Continental (NYSE:UAL), US Airways (NYSE:LCC), AirTran Holdings (NYSE:AAI) and JetBlue (NASDAQ:JBLU).
Southwest Airlines was trading at $11.44, down $0.19, or 1.63 percent, as of 11:55 AM EDT
Net income for Southwest Airlines dropped to $5 million, or 1 cent a share, against $11 million or 1 cent a share last year in the same quarter, a drop of 54.5 percent.
Revenue for the quarter jumpted to $3.1 billion, an 18 percent boost.
Analysts on average had been looking for a gain of 3 cents a share.
Chairman, CEO and President Gary C. Kelly, said, “While escalating jet fuel prices and inclement weather challenged our first quarter profitability, our people prevailed.”
The airline's major competitors include Alaska Air (NYSE:ALK), AMR Corporation (NYSE:AMR), Delta Air Lines(NYSE:DAL), United Continental (NYSE:UAL), US Airways (NYSE:LCC), AirTran Holdings (NYSE:AAI) and JetBlue (NASDAQ:JBLU).
Southwest Airlines was trading at $11.44, down $0.19, or 1.63 percent, as of 11:55 AM EDT
Tuesday, April 12, 2011
Airlines (DAL) (UAL) (AMR) Jump on Lower Oil
The drop in crude oil prices today gave the airline sector a needed breather, as shares of Delta Air Lines (NYSE:DAL), United Continental Holdings Inc. (NYSE:UAL) and AMR Corp. (NYSE:AMR) were all making big upward moves in response to the positive move.
Crude prices were trading a little over $106 a barrel after closing on Friday over $112 a barrel.
The NYSE Arca Airline Index was also up today by 1.7 percent
AMR Corporation was trading at $5.895, up $0.1150, or 1.99 percent, as of 2:48 PM EDT. United Continental Holdings Inc. was at $21.81, gaining $1.28, or 6.26 percent. Delta Air Lines was trading at $9.94, rising 0.51, or 5.46 percent.
Crude prices were trading a little over $106 a barrel after closing on Friday over $112 a barrel.
The NYSE Arca Airline Index was also up today by 1.7 percent
AMR Corporation was trading at $5.895, up $0.1150, or 1.99 percent, as of 2:48 PM EDT. United Continental Holdings Inc. was at $21.81, gaining $1.28, or 6.26 percent. Delta Air Lines was trading at $9.94, rising 0.51, or 5.46 percent.
Friday, April 8, 2011
United (UAL) (DAL) (AMR) (JBLU) (LCC) Plunge on Slow Demand, High Fuel Costs
The high cost of fuel for aircraft and rising gasoline costs for vehicles has the airline industry once again in turmoil and searching for answers, as shares of airlines like United Continental (UAL), Delta Air Lines (DAL), AMR (AMR), JetBlue Airways (JBLU) and US Airways Group (LCC) are plunging.
Other factors for airlines with strong exposure to the Japanese market are also part of the problem, although there was a slowdown before that, although the earthquake has exasperated it.
Consumers and businesses start to take notice when gasoline prices begin to approach $4 a gallon, as they are now, and there is a tightening of spending in response.
Add to that an endless stream of price hikes by the airlines in response to higher costs and you have a situation which is and will continue to devastate the industry.
In March, the International Air Transport Association slashed its full-year profit outlook for the industry to $8.6 billion from $9.1 billion, and boosted its assumption that oil prices for the year will average $96 a barrel.
The lobbying group also said that for every dollar increase in the average price of a barrel of oil annually, airlines face an additional $1.6 billion in fuel costs.
It appears airlines have hit a top in successfully being able to raise prices, an ominous sign for them going forward.
US Airways was trading at $7.86, falling $0.38, or 4.61 percent, as of 2:29 PM EDT. JetBlue Airways was trading at $5.83, dropping $0.29, or 4.74 percent. AMR was at $5.7450, down $0.295, or 4.88 percent. Delta Air Lines was trading at $8.95, declining $0.45, or 4.84 percent. United Continental Holdings was at $19.51, down $1.49, or 7.10 percent.
Other factors for airlines with strong exposure to the Japanese market are also part of the problem, although there was a slowdown before that, although the earthquake has exasperated it.
Consumers and businesses start to take notice when gasoline prices begin to approach $4 a gallon, as they are now, and there is a tightening of spending in response.
Add to that an endless stream of price hikes by the airlines in response to higher costs and you have a situation which is and will continue to devastate the industry.
In March, the International Air Transport Association slashed its full-year profit outlook for the industry to $8.6 billion from $9.1 billion, and boosted its assumption that oil prices for the year will average $96 a barrel.
The lobbying group also said that for every dollar increase in the average price of a barrel of oil annually, airlines face an additional $1.6 billion in fuel costs.
It appears airlines have hit a top in successfully being able to raise prices, an ominous sign for them going forward.
US Airways was trading at $7.86, falling $0.38, or 4.61 percent, as of 2:29 PM EDT. JetBlue Airways was trading at $5.83, dropping $0.29, or 4.74 percent. AMR was at $5.7450, down $0.295, or 4.88 percent. Delta Air Lines was trading at $8.95, declining $0.45, or 4.84 percent. United Continental Holdings was at $19.51, down $1.49, or 7.10 percent.
Friday, March 18, 2011
Airlines Jump (DAL) (LCC) (AMR) (UAL) as Crude Drops
Shares of airlines United Continental (NYSE:UAL), US Airways Group, Inc. (NYSE:LCC), AMR Corp. (NYSE:AMR) and Delta Air Lines Inc. (NYSE:DAL) are all moving up big today as crude oil drops on easing tensions in the Middle East.
WTI April 11 contracts fell $0.51 to $100.91 a barrel in morning trading on the Comex.
This comes on the heels of news the Libyan Prime Minister has called for a cease fire after the announcement from the UN Security Council that it has approved a no-fly zone over Libya.
Fears have temporarily been allayed on concerns oil exports would decline as events escalated.
United Continental was trading at $22.96, gaining $0.79, or 3.56 percent, as of 11:34 AM EDT. AMR Corporation was up to $6.62, up $0.27, or 4.25 percent. US Airways Group was at $9.00, rising $0.51, or 6.01 percent. Delta Air Lines Inc. was at $10.27, gaining $0.41, or 4.16 percent.
WTI April 11 contracts fell $0.51 to $100.91 a barrel in morning trading on the Comex.
This comes on the heels of news the Libyan Prime Minister has called for a cease fire after the announcement from the UN Security Council that it has approved a no-fly zone over Libya.
Fears have temporarily been allayed on concerns oil exports would decline as events escalated.
United Continental was trading at $22.96, gaining $0.79, or 3.56 percent, as of 11:34 AM EDT. AMR Corporation was up to $6.62, up $0.27, or 4.25 percent. US Airways Group was at $9.00, rising $0.51, or 6.01 percent. Delta Air Lines Inc. was at $10.27, gaining $0.41, or 4.16 percent.
Monday, March 7, 2011
US Airways (LCC), AMR (AMR), Delta (DAL), United Continental (UAL), JetBlue (JBLU) Remain Under Pressure on Rising Crude Prices
Shares of airlines like US Airways Group, Inc. (NYSE:LCC), AMR Corp. (NYSE:AMR), Delta Air Lines Inc. (NYSE:DAL), United Continental Holdings (NYSE:UAL) and JetBlue Airways Corp. (NASDAQ:JBLU) continue to be under pressure as crude prices are at their highest levels in over two years.
Unrest and the resultant uncertainty in the Middle East is driving oil prices up.
The AMEX AIRLINE INDEX (AMEX:XAL) closed the week down as well, finishing at $42.29, down $0.57, or 1.33 percent.
A boost in fuel prices will pressure margins and earnings for airlines, as they still struggle for consolidation and balance after the U.S. recession through 2009 - 10, and following the previous surge in oil prices above $100 a barrel in mid-2008.
US Airways closed Friday at $8.28, down $0.08, or 0.96 percent. AMR closed at $6.14, falling 0.25, or 3.91 percent. JetBlue ended the session at $5.545, dropping $0.08, or 1.42 percent. Delta closed the day at $9.91, down $0.35, or 3.41 percent. United Continental closed at $22.26, falling $0.77, or 3.34 percent.
Unrest and the resultant uncertainty in the Middle East is driving oil prices up.
The AMEX AIRLINE INDEX (AMEX:XAL) closed the week down as well, finishing at $42.29, down $0.57, or 1.33 percent.
A boost in fuel prices will pressure margins and earnings for airlines, as they still struggle for consolidation and balance after the U.S. recession through 2009 - 10, and following the previous surge in oil prices above $100 a barrel in mid-2008.
US Airways closed Friday at $8.28, down $0.08, or 0.96 percent. AMR closed at $6.14, falling 0.25, or 3.91 percent. JetBlue ended the session at $5.545, dropping $0.08, or 1.42 percent. Delta closed the day at $9.91, down $0.35, or 3.41 percent. United Continental closed at $22.26, falling $0.77, or 3.34 percent.
Tuesday, February 22, 2011
United Continental (NYSE:UAL), Delta (NYSE:DAL), AMR (NYSE:AMR) Fall on Higher Oil Prices
U.S. airline stocks tumbled on Tuesday, smacked by a spike in oil prices amid unrest in the Middle East.
"The airlines are having a tough day of it. And it's to be expected, given everything happening out there," said Helane Becker, an airline analyst with Dahlman Rose & Co.
The main drag on airline stocks was an oil rally, which boosts the prices of jet fuel, a top cost for airlines. U.S. crude oil was up $4 to $93.71 per barrel on concerns that the revolt in Libya could spread to other major oil producers.
According to the Air Transport Association, an airline trade group, every penny-per-gallon-per-year increase in the price of jet fuel means $170 million to $180 million in additional fuel expenses for the industry.
The Arca airline index (AMEX:XAL) was down 3.97 percent in morning trade. United Continental Holdings (NYSE:UAL) was off 6.5 percent to $25.17, Delta Air Lines (NYSE:DAL) fell 7 percent to $10.69, and AMR Corp (NYSE:AMR), parent of American Airlines, dropped 5.6 percent to $7.02, all on the New York Stock Exchange.
Rest of Story...
"The airlines are having a tough day of it. And it's to be expected, given everything happening out there," said Helane Becker, an airline analyst with Dahlman Rose & Co.
The main drag on airline stocks was an oil rally, which boosts the prices of jet fuel, a top cost for airlines. U.S. crude oil was up $4 to $93.71 per barrel on concerns that the revolt in Libya could spread to other major oil producers.
According to the Air Transport Association, an airline trade group, every penny-per-gallon-per-year increase in the price of jet fuel means $170 million to $180 million in additional fuel expenses for the industry.
The Arca airline index (AMEX:XAL) was down 3.97 percent in morning trade. United Continental Holdings (NYSE:UAL) was off 6.5 percent to $25.17, Delta Air Lines (NYSE:DAL) fell 7 percent to $10.69, and AMR Corp (NYSE:AMR), parent of American Airlines, dropped 5.6 percent to $7.02, all on the New York Stock Exchange.
Rest of Story...
Friday, January 21, 2011
AMR's (NYSE:AMR) 2011 Performance Weakened on Slowing Cash Generation
Commenting on the latest quarterly results of AMR (NYSE:AMR), Barclays (NYSE:BCS) noted the expected decrease in cash generation by the company will weaken 2011 catalysts.
Barclays says, "The result was slightly better than our estimate ($0.37) and in line with the street ($0.32). Collectively, guidance from the release and call looks reasonably in line leaving our 2011 estimate unimportantly lower. Unfortunately, however, the cash generation we expected in 2011 declines as the company's CAPX guidance for 2011 changed meaningfully. We still see significant optionality in AMR, but the change in cash generation weakens what we expected to be a strong catalyst for performance in 2011.
"2011 estimate unimportantly unchanged: We have tweaked our model to reflect slightly higher non-fuel cost guidance driving a small reduction to our 2011 estimate from $1.00 to $0.90."
Barclays reiterates an 'Overweight' rating on AMR Corp (AMR), which closed Thursday at $7.53, down $0.16, or 2.08 percent. Barclays has a price target of $18 on AMR.
Barclays says, "The result was slightly better than our estimate ($0.37) and in line with the street ($0.32). Collectively, guidance from the release and call looks reasonably in line leaving our 2011 estimate unimportantly lower. Unfortunately, however, the cash generation we expected in 2011 declines as the company's CAPX guidance for 2011 changed meaningfully. We still see significant optionality in AMR, but the change in cash generation weakens what we expected to be a strong catalyst for performance in 2011.
"2011 estimate unimportantly unchanged: We have tweaked our model to reflect slightly higher non-fuel cost guidance driving a small reduction to our 2011 estimate from $1.00 to $0.90."
Barclays reiterates an 'Overweight' rating on AMR Corp (AMR), which closed Thursday at $7.53, down $0.16, or 2.08 percent. Barclays has a price target of $18 on AMR.
Wednesday, January 5, 2011
AMR (NYSE:AMR), Delta (NYSE:DAL), UAL (NYSE:UAL) Top Barclays US Airline Picks
Barclays is fairly upbeat about the U.S. airline industry, and their top picks in the sector remain AMR Corp (NYSE:AMR), Delta (NYSE:DAL) and UAL Corp (NYSE:UAL).
Barclays said, "Airlines should begin reporting December RASM this week. We expect to see deceleration in year-over-year compares given substantially tougher comps from last year, but underlying trends remain very encouraging. The storm in late December will probably dent earnings for the quarter, but it is unclear what impact it will have on RASM; for now we assume a neutral impact. Storm recovery wasn't the only thing on the industry's mind late in December. Fare initiatives continued with the industry intent on recovering a rising fuel burden in 2011. We believe excessive focus on near-term fuel movement is a mistake and would take advantage of any share price weakness it creates. Favorites remain AMR Corp, Delta and UAL Corp."
AMR closed Tuesday at $8.10, up $0.18, or 2.27 percent. Delta closed at $12.53, down $0.05, or 0.40 percent. UAL closed at $25.53, gaining $0.40, or 1.59 percent.
Barclays said, "Airlines should begin reporting December RASM this week. We expect to see deceleration in year-over-year compares given substantially tougher comps from last year, but underlying trends remain very encouraging. The storm in late December will probably dent earnings for the quarter, but it is unclear what impact it will have on RASM; for now we assume a neutral impact. Storm recovery wasn't the only thing on the industry's mind late in December. Fare initiatives continued with the industry intent on recovering a rising fuel burden in 2011. We believe excessive focus on near-term fuel movement is a mistake and would take advantage of any share price weakness it creates. Favorites remain AMR Corp, Delta and UAL Corp."
AMR closed Tuesday at $8.10, up $0.18, or 2.27 percent. Delta closed at $12.53, down $0.05, or 0.40 percent. UAL closed at $25.53, gaining $0.40, or 1.59 percent.
Monday, December 13, 2010
AMR (NYSE:AMR), Delta (NYSE:DAL), United Continental (NYSE:UAL), Barclays' (NYSE:BCS) Favorite Airlines
Commenting on the airline sector, Barclays (NYSE:BCS) said they see pensions having less effect on the airlines going forward, and keep their favorites - AMR (NYSE:AMR), Delta (NYSE:DAL) and United Continental (NYSE:UAL).
Barclays said, "Market focus in airlines has been predominantly on revenue and fuel, but as 2011 approaches, we expect much more focus on the cost outlook. While many airlines still have degrees of pension exposure, our analysis suggests that pension expense pressure is unlikely to be material to the earnings expansion story we envision for 2011. Favorites remain AMR Corp, Delta, and United Continental.
"While bankruptcies and near-bankruptcies have reduced pension exposure within the industry, Alaska Air (NYSE:ALK), AMR, DAL, and UAL (through the Continental acquisition) have remaining exposures.
"Of those exposed, our analysis suggests that AMR has the most exposure with a mere 0.10% of revenue incrementally during 2011. UAL has the least with less than 1 bps of its 2011 revenue.
"Given current capacity expectations and revenue dynamics, we continue to see earnings expansion potential in 2011 despite higher fuel prices and headwinds from pension."
AMR closed Friday at $7.97, up $0.01, or 0.19 percent. Delta closed at $13.02, down $0.29, or 2.18 percent. United Continental ended the day at $26.10, down $0.05, or 0.19 percent.
Barclays said, "Market focus in airlines has been predominantly on revenue and fuel, but as 2011 approaches, we expect much more focus on the cost outlook. While many airlines still have degrees of pension exposure, our analysis suggests that pension expense pressure is unlikely to be material to the earnings expansion story we envision for 2011. Favorites remain AMR Corp, Delta, and United Continental.
"While bankruptcies and near-bankruptcies have reduced pension exposure within the industry, Alaska Air (NYSE:ALK), AMR, DAL, and UAL (through the Continental acquisition) have remaining exposures.
"Of those exposed, our analysis suggests that AMR has the most exposure with a mere 0.10% of revenue incrementally during 2011. UAL has the least with less than 1 bps of its 2011 revenue.
"Given current capacity expectations and revenue dynamics, we continue to see earnings expansion potential in 2011 despite higher fuel prices and headwinds from pension."
AMR closed Friday at $7.97, up $0.01, or 0.19 percent. Delta closed at $13.02, down $0.29, or 2.18 percent. United Continental ended the day at $26.10, down $0.05, or 0.19 percent.
Friday, December 10, 2010
AMR's (NYSE:AMR) RASM Guidance Exceeds Expectations Says Barclays (NYSE:BCS)
RASM guidance from AMR Corp (NYSE:AMR) came in at 47 percent for the fourth quarter, above the 4.8 percent Barclays (NYSE:BCS) had been looking for.
Barclays commented, "Yesterday (Wednesday), AMR provided encouraging 4Q mainline RASM guidance in excess of what we had been expecting. The carrier expects its 4Q mainline RASM to increase by - 7% (we had been modeling +4.8%)...AMR remains our top pick as we believe margin improvement at AMR should exceed the industry average in 2011. More importantly, cash generation in 2011 should screen best in the industry as the carrier makes a turn from a CapEx-heavy 2010 to a more normalized CapEx year in 2011...We revise our estimates to account for the carrier's 4Q RASM guidance as well as the current fuel curve. Our 4Q estimate increases to ($0.35) from ($0.45), while our FY11 estimate remains at $1.20."
Barclays maintains an 'Overweight' rating on AMR Corp., which closed at $7.95, up $0.24, or 3.18 percent. Barclays has a price target of $18 on them.
Barclays commented, "Yesterday (Wednesday), AMR provided encouraging 4Q mainline RASM guidance in excess of what we had been expecting. The carrier expects its 4Q mainline RASM to increase by - 7% (we had been modeling +4.8%)...AMR remains our top pick as we believe margin improvement at AMR should exceed the industry average in 2011. More importantly, cash generation in 2011 should screen best in the industry as the carrier makes a turn from a CapEx-heavy 2010 to a more normalized CapEx year in 2011...We revise our estimates to account for the carrier's 4Q RASM guidance as well as the current fuel curve. Our 4Q estimate increases to ($0.35) from ($0.45), while our FY11 estimate remains at $1.20."
Barclays maintains an 'Overweight' rating on AMR Corp., which closed at $7.95, up $0.24, or 3.18 percent. Barclays has a price target of $18 on them.
Monday, November 22, 2010
AMR (NYSE:AMR) Least Favorite Among Airline Stocks for Soleil
Soleil Securities has maintained their "Hold" rating on AMR Corp. (NYSE:AMR), while raising their price target and EPS on them.
"While we are slightly raising our 2010 and 2011 EPS forecast to a rounded loss of ($1.30) from ($1.50) and a profit of $0.20 from $0.10, respectively, those changes are driven by stronger expected revenues and some offset from higher fuel prices," Soleil said.
Even so, they added, "we view AMR shares as being on a short leash, overvalued if they continue their rise without an accompanying improvement in the fundamental and, especially, the labor outlook. Our rating on AMR remains Hold, but it is our least favorite airline stock."
AMR closed Friday slightly up at $8.24, rising $0.01, or 0.12 percent. Soleil has a price target of $8 on the airline, increasing it from $6.
"While we are slightly raising our 2010 and 2011 EPS forecast to a rounded loss of ($1.30) from ($1.50) and a profit of $0.20 from $0.10, respectively, those changes are driven by stronger expected revenues and some offset from higher fuel prices," Soleil said.
Even so, they added, "we view AMR shares as being on a short leash, overvalued if they continue their rise without an accompanying improvement in the fundamental and, especially, the labor outlook. Our rating on AMR remains Hold, but it is our least favorite airline stock."
AMR closed Friday slightly up at $8.24, rising $0.01, or 0.12 percent. Soleil has a price target of $8 on the airline, increasing it from $6.
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