Morgan Stanley Raises American Airlines Price Target to $24

Morgan Stanley raised its price target on American Airlines Group Inc. (NASDAQ:AAL) to $24 from $20 on June 1, maintaining an Overweight rating on the shares. The adjustment follows the company's fiscal Q1 2026 results.

Rating Change

• Previous Price Target: $20
• New Price Target: $24
• Rating: Overweight (maintained)

Analyst Rationale

The Morgan Stanley analyst believes AAL remains undervalued, with potential upside of about 20% from current levels. The view is based on improving air travel demand and operational efficiency.

Context

American Airlines shares currently trade below $20, making it one of the long-term stock picks under $20 according to Insider Monkey. Other analysts have mixed views, but this upgrade adds positive sentiment.

Conclusion

The price target hike signals confidence in the company's prospects, but investors should consider sector risks like fuel price volatility and competition.