By Christiana Sciaudone
Investing.com -- American Airlines (NASDAQ:AAL) rallied 5% after Jefferies (NYSE:JEF) called it the best-positioned airline.
Jefferies upgraded American Airlines to hold from underperform with a price target of $25 from $15. Analyst Sheila Kahyaoglu raised the 2023 profit estimate by 2% to $2.10 from $2.05, accounting for higher yields, with some offset from the increase in fuel prices.
American Airlines got hit hard as the pandemic led to suspended flights around the world amid lockdowns. As vaccinations are starting to become widely available, shares have increased, with the stock rallying some 60% this year.
American is the best positioned of the network carriers to outperform through the recovery thanks to its younger fleet at less than 11 years compared to peers at about 15 years and a strong network as the sole operator of 37% of routes vs 25% for peers, StreetInsider reported Jefferies as saying.