Street Calls of the Week: Exxon Mobil receives rare upgrade
Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week: upgrades for American Airlines, Exxon Mobil, Sunoco, Avis Budget, and Coinbase,
InvestingPro subscribers always get first dibs on market-moving rating changes.
What happened? On Monday, Wolfe Research upgraded American Airlines Group (NASDAQ:AAL) to Outperform with a $17.00 price target.
What’s the full story? Wolfe Research upgraded American Airlines to Buy, as they see 2024 as a bridge year for airlines, with EPS bottoming out and RASM turning positive. The analysts note that the Airline Index has lagged the S&P 500 for four consecutive years, and that all airline stocks underperformed last year due to rising capacity and falling pricing. Wolfe expects mixed trends in 2024 and more upside potential as capacity growth moderates.
The analysts also find American’s valuation attractive, as it trades at low multiples of their EPS and EBITDAR estimates for 2024 and 2025. Wolfe projects a below-Consensus EPS of $1.75 for 2024, but a recovering EPS of $2.95 for 2025.
The brokerage argues that American Airlines is well-positioned to benefit from the rebound in the airline industry as it has a large and loyal customer base, a diversified network, and a strong balance sheet.
Outperform at Wolfe means “The security is projected to outperform analyst's industry coverage universe over the next 12 months.”
How did the stock react? American Airlines equity traded higher on the premarket headlines from $13.65 to $13.90, a gain of 1.68%. American opened the regular session at $13.95 and closed at $13.61.
What happened? On Tuesday, TD Cowen upgraded Exxon Mobil Corp (NYSE:XOM) to Outperform with a $115 price target.
What’s the full story? TD Cowen is
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