JPMorgan Neutral On AMR

In a note out today, JPMorgan rates AMR (NYSE: AMR), the parent company of American Airlines, neutral following the company's move to file voluntary Chapter 11 bankruptcy petitions. Separately, Citigroup rated AMR sell with a $0 price target.

JPMorgan said the AMR news probably isn't good for shareholders, but it could be a positive for the industry as a whole and that American might cut capacity with a bias toward Chicago.

The bank noted media and investors are already speculating that AMR and US Air (NYSE: LCC) may look to combine and called that view “valid” as US Air wants to make a deal.