American Airlines Group Inc. and Delta Air Lines Inc. were upgraded at Deutsche Bank on Tuesday, which cited attractive valuation and optimism over the recent drop in energy prices. Analyst Michael Linenberg raised his ratings on American and Delta, as well as on Copa Holdings , to buy from hold. American's stock slipped 0.9% while Delta shares gave up 0.8% in morning trade. Linenberg has a $50 stock price target for American, which is 29% above current levels, and a $50 target for Delta's stock, or 15% above current levels. Linenberg said he believes the share prices "represent an attractive entry-point compared to our 12-month price targets." He said the recently decline in energy prices, "if sustained, could spell upside for EPS estimates." Continuous crude oil futures were down 4% in morning trade. Although they soared 27% over the previous three sessions, there were still down 21% since the end of June. With this in mind, Linenberg said he believes any micro and macro concerns have been "more than fully discounted in share prices." American's stock has tumbled 28% year to date and Delta shares have dropped 12%, compared with a 6.4% decline in the S&P 500.
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