12:20 AM EDT, 05/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $2 to $13, 4.9x our 2025 EPS view (lowered to $2.64 from $3.09; 2024 cut to $2.13 from $2.39), a discount to AAL's historical average. We think a discount is merited due to a more neutral outlook for domestic demand for 2024-2025. Shares fell ~14% on Wednesday after the airline announced an update to its Q2 guide, with earnings now expected to be in range of $1.00-$1.15 per share (vs. prior guide of $1.15-$1.45), TRASM (unit revenues) expected to fall 5%-6% Y/Y (vs. prior guide declining 1%-3%), and operating margins expected to be in range of 8.5%-10.5% (vs. prior 9.5%-11.5%). In addition, AAL expects Q2 unit costs (CASM-Ex) to remain flat/increase by 1% (vs. prior guidance of increasing 1%-3%); however, we believe that AAL's guidance on unit costs could fall below investor expectations, given that the airline industry has been dealing with persistent delays in new aircraft deliveries, which has placed upward pressure on maintenance costs on much older aircraft, in our view.