American Airlines Group Inc
AAL may face significant headwinds through 2017, Credit Suisse’s Julie Yates said in a report. She downgraded the rating for the company from Outperform to Underperform, while slashing the price target from $47 to $28.
Analyst Julie Yates mentioned that American Airlines has high leverage and abysmal free cash flow. The company’s FCF is likely to worsen in 2017, as fuel costs rise.
“Until industry fundamentals show marked improvement, we don’t think investors will have the appetite for AAL's leverage,” Yates wrote. She added that despite the lack of cash flow support, American Airlines’ shares were more expensive than peers on EV/EBITDAR.
Rising fuel pressures would impact American Airlines most significantly, since the company is unhedged and has enjoyed the lowest per gallon price. For the company to offset the y/y rise in fuel in 2017, PRASM would need to increase by more than 1 percent in order to cross the $1.1B mark in higher fuel costs.
“Based on the mid-single digit PRASM declines in H1'16 and muted improvement likely in H2'16, this seems increasingly unlikely when looking at the sequential improvement required in 2017 to achieve such a result,” the analyst commented.
Yates added that there was greater optimistic in January on the industry as well as American Airlines, which is why the stock had been upgraded. Since then, fuel had surged, while yields “don’t appear to be following anytime soon.”
Read more: http://www.benzinga.com/analyst-ratings/analyst-color/16/07/8187418/american-airlines-cut-at-credit-suisse-calls-january-upg#ixzz4Dd4Ie5uh
American is seen as likeliest to take the biggest hit from any Brexit fallout, in part because of its large joint-venture with British Airways and its higher concentration of resources in the island nation. Delta Air Lines, meanwhile, owns nearly half of British airline Virgin Atlantic. United doesn't have a partner in the U.K. but still flies a lot to the nation.
But excluding such joint-venture agreements, American Airlines also had the most exposure to the U.K. market, with 6.2% of round-trip capacity hitting the U.K., Buckingham Research
AAL "underweight" reiterated
Jun 23, 2016 12:43 PM EDT
Credit Suisse Success rate3
June 23 (FlashRatings.com) - Analysts at Credit Suisse maintain their "underweight" rating for American Airlines Group, Inc. (AAL).
Tesla proposes to buy Solar City for $26.50-$28.50/share
•Solar City (NASDAQ:SCTY) +22.3% AH after Tesla (NASDAQ:TSLA) says in a blog post that it has made an offer to acquire the company; TSLA -10% AH.
•TSLA proposes an exchange ratio of 0.122x to 0.131x shares of Tesla common stock for each share of SCTY, which represents a value of $26.50-$28.50/share, or a 21% premium over today's closing price.
•TSLA says its proposal builds on a partnership between the two companies where SCTY uses TSLA battery packs as part of its solar projects.
So as TSLA shares fall so does SCTY buy out offer. This deal sucks!
2016 has drop from $6.64 to $5.44 18% drop
2017 has drop from $6.66 to $5.69 15% drop..
$21 Billion in debt & $7 Billion in cash & $3.1 Billion in revenue AAL looks to be price just about right at $29.50
AAL "overweight" reiterated
Jun 15, 2016 2:29 PM EDT
June 15 (FlashRatings.com) - Analysts at Morgan Stanley maintain their "overweight" rating for American Airlines Group, Inc. (AAL).
Jun 14, 2016 4:20 PM EDT
June 14 (FlashRatings.com) - Analysts at Raymond James maintain their "outperform" rating for American Airlines Group, Inc. (AAL).
Funny, out perform rating. Define outperform ? Right now it's getting it #$%$ kick.
American Airlines Group (Nasdaq: AAL) reported May and year-to-date 2016 traffic results.
American Airlines Group’s total revenue passenger miles (RPMs) were 19.4 billion, up 0.5 percent versus May 2015. Total capacity was 23.7 billion available seat miles (ASMs), up 1.7 percent versus May 2015. Total passenger load factor was 81.9 percent, down 0.9 percentage points versus May 2015.
The Company continues to expect its second quarter 2016 consolidated passenger revenue per available seat mile (PRASM) to be down approximately 6 to 8 percent year-over-year. In addition, the Company continues to expect its second quarter pretax margin excluding special items to be between 14 and 16 percent.
$25? LOl.. Get real! Declining revenue & earnings, shrinking margins, major competition, PAY will never see $25 again for at least 2 years. But it will see $16....
Hell they cut earning estimates by 20%. Hell yes it deserves to be chop down 30%. $18 stock at best. By Friday Pay will trade under $18.
Q2 was a mixed quarter for Verifone as we grew our business, but experienced several difficult market dynamics,” said Paul Galant, Chief Executive Officer of Verifone. “As a result, it is necessary for us to adjust for these risks and update our outlook for FY16 to $2.100 billion dollars of revenue and $1.85 of earnings per share. We are aggressively executing mitigating actions including a headcount restructuring and a review of underperforming businesses
To give investors a sense of why this quarter was particularly challenging, $558 million in cash from operations annualizes to approximately $2.2 billion. Between now and 2020, Valeant has approximately $15 billion of debt due, as well as other obligations of approximately $480 million. If the business stays the way it is, or continues to deteriorate, we believe Valeant will be challenged in making those debt payments. Based on this quarter’s cash from operations, we do not see debt holders being enthusiastic about restructuring Valeant debt…
Given how late Valeant is reporting and its pledge for greater transparency, we do not understand how the full financial statements are not available today and why despite the SEC’s comments, Valeant continues to not provide GAAP EPS guidance with a build to adjusted guidance.