American Airlines stock could double from here, according to JPMorgan. The investment bank has upgraded the airline’s stock to “overweight” and set a price target of $22, which is more than double its current price of around $10.
JPMorgan’s analysts believe that American Airlines is well-positioned to benefit from the recovery in air travel demand as the COVID-19 pandemic subsides. The airline has a strong domestic network and a solid balance sheet, which should help it weather any short-term turbulence.
In addition, American Airlines has taken steps to reduce its costs and improve its efficiency, which should boost its profitability in the long run. The airline has retired older planes, renegotiated contracts with suppliers, and cut back on non-essential spending.
Overall, JPMorgan’s bullish outlook on American Airlines reflects the broader optimism in the airline industry as the world emerges from the pandemic. While there are still risks and uncertainties ahead, many investors believe that the worst is behind us and that air travel will rebound strongly in the coming years.
Of course, no investment is without risk, and investors should always do their own research and consult with a financial advisor before making any decisions. But for those who are bullish on the airline industry and believe in American Airlines’ prospects, JPMorgan’s upgrade could be a sign of good things to come.