American Airlines Group Inc (AAL) said over the weekend that Boeing 737 MAX would probably return to commercial service by the end of this year. It would depend on when the jet is certified by the US Federal Aviation Administration, the company said.
American Airlines shares closed higher for the sixth time in the past ten trading sessions on NASDAQ on Friday. It has also been the sharpest single-session gain since October 7th. The stock went up 1.88% ($0.23) to $12.46, after touching an intraday high at $12.56, or a price level not seen since October 14th ($12.57).
Shares of American Airlines Group have retreated 56.56% so far in 2020 compared with a 7.83% gain for the benchmark index, S&P 500 (SPX).
In 2019, American Airlines’ stock went down 10.68%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.
“We remain in contact with the FAA and Boeing on the certification process and we’ll continue to update our plans based on when the aircraft is certified,” the air carrier said in a statement.
American Airlines also said that a daily 737 MAX flight between Miami and New York would be operated from December 29th to January 4th, with customers being able to book flights from October 24th.
Analyst stock price forecast and recommendation
According to CNN Money, the 16 analysts, offering 12-month forecasts regarding American Airlines Group’s stock price, have a median target of $10.00, with a high estimate of $27.00 and a low estimate of $1.00. The median estimate represents a 19.74% downside compared to the closing price of $12.46 on October 16th.
The same media also reported that at least 9 out of 20 surveyed investment analysts had rated American Airlines Group’s stock as “Sell”, while 6 – as “Hold”. On the other hand, 3 analysts had recommended buying the stock.