American Airlines stock bounces after Raymond James analyst backs away from bearish stance

Shares of American Airlines Group Inc. climbed 1.2% in premarket trading Friday, after analyst Savanthi Syth at Raymond James said she was no longer bearish on the air carrier, as the recent selloff has provided to a more-balanced risk-reward profile. Syth raised her rating to market perform, after being at underperform since November. The stock fell 4.5% on Thursday after American reported first-quarter results, to mark the 12th decline in the past 13 sessions, a stretch in which the stock 17.2%. Over the same time, the U.S. Global Jets ETF had lost 8.3% while the S&P 500 gained 1.4%. “The healthy domestic/near-international recovery (particularly in markets where American is strong), funds from PSP2 and PSP3, as well as pension relief
included with PSP3 have lowered risks in the near- to medium-term relative to our late-November downgrade of AAL,” Syth wrote in a note to clients.

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