Citi Adds An "Upside 90-day Catalyst Watch" on American Airlines Group (AAL)

American Airlines Group Inc. (NASDAQ:AAL) is one of the most undervalued travel stocks to buy according to hedge funds. On February 3, Citi added an “upside 90-day catalyst watch” on American Airlines Group Inc. (NASDAQ:AAL) and reiterated a Buy rating on the stock with a $21 price target. The firm stated that it is “tactically bullish” on the airline sector after the fiscal Q4 reports.

However, TD Cowen cut the price target on American Airlines Group Inc. (NASDAQ:AAL) to $17 from $19 on January 30, keeping a Buy rating on the shares. The firm told investors that it updated its model with Q1 EPS standing near the low end of the range, given complications surrounding Winter Storm Fern.

The rating updates came after American Airlines Group Inc. (NASDAQ:AAL) reported its fiscal Q4 and full year 2025 financial results on January 27, reporting record Q4 revenue of $14.0 billion, despite a negative impact of $325 million from the government shutdown. Management reported sequential improvement in year-over-year passenger unit revenue performance compared to Q3 in each of the international entities, and added that the company reduced its total debt by $2.1 billion in 2025.

American Airlines Group Inc. (NASDAQ:AAL) operates a network carrier through its principal wholly owned mainline operating subsidiary, American, offering air transportation services for cargo and passengers. The company’s operations are divided into the following geographical segments: Domestic, Latin America, Atlantic, and Pacific.

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Disclosure: None. This article is originally published at Insider Monkey.