Deutsche Bank Upgrades American Airlines (AAL), Delta Air (DAL), and United Airlines (UAL) to Buy

Deutsche Bank upgraded American Airlines (NASDAQ: AAL) from Hold to Buy with a price target of $40.00. Delta Air Lines (NYSE: DAL) was raised to Buy with a price target of $48 and United Airlines (NYSE: UAL) was raised to Buy with a price target of $59. Analyst Michael Linenberg sees more favorable risk/reward."We are raising our ratings on AAL, DAL and UAL to Buy from Hold as we are of the view that all known negatives (Brexit, tepid global economic growth, over-supplied markets, etc.) are more than fully discounted in the share prices which are, on average, trading at 6.4x our 2016 EPS estimates and 6.8x our 2017 EPS estimates. (Our 2016 and 2017 EPS estimates were recently lowered by 10% and 15%, respectively)" said Linenberg.