American Airlines finds itself balancing new regulatory requirements with a wave of analyst optimism. The carrier’s stock is influenced by an impending safety directive from the Federal Aviation Administration (FAA) targeting specific Boeing aircraft, even as the company reaffirms its financial outlook and garners fresh coverage from Wall Street firms.
Wall Street Shows Renewed Confidence
Recent analyst activity highlights growing interest in the airline’s equity. On December 9, BMO Capital Markets initiated coverage with a “Market Perform” rating and a $16.75 price target. This followed a December 4 initiation by Citigroup, which issued a “Buy” recommendation with a $19.00 target. The median price target over the preceding six months stood at $13.50. Shares of American closed Tuesday’s session at $15.03.
This analyst attention coincides with the company’s reaffirmation of its financial guidance. For the fourth quarter of 2025, American Airlines anticipates adjusted earnings per share (EPS) in a range of $0.45 to $0.75. The full-year 2025 forecast calls for EPS between $0.65 and $0.95. The current analyst consensus for the ongoing year is $2.42.
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A New FAA Mandate Presents a Challenge
Separately, the FAA has finalized a new Airworthiness Directive (AD) for certain Boeing 787-9 and 787-10 aircraft. The directive, which becomes effective on January 13, 2026, mandates inspections and potential further actions on affected planes. It addresses concerns regarding potentially non-conforming titanium alloys in specific components.
American Airlines had previously engaged in the rulemaking process, seeking clarification on acceptable inspection methods. While the precise financial impact of the required measures has not been quantified, such directives typically generate compliance costs and can necessitate operational adjustments. The airline’s immediate operational focus will include implementing this new FAA requirement.
The Path Forward for Investors
In the coming months, investors will monitor details regarding the costs associated with the FAA directive. However, the primary driver for the stock’s trajectory is likely to be the company’s ability to meet its stated 2025 profit targets, as demonstrated in its upcoming quarterly results. The recent positive analyst notes suggest the market is increasingly recognizing American’s progress in operational performance and strategic expansion, such as at its key Chicago O’Hare hub.
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