UPDATE: Bank of America Reiterates Neutral Rating, Raises PT on American Airlines Group on Continued Margin Momentum

In a report published Tuesday, Bank of America analyst Glenn D. Engel reiterated a Neutral rating on

, and raised the price target from $40.00 to $42.00. In the report, Bank of America noted, “The combination of American and US Airways form the world's largest airline with leading share on the East Coast and in the Midwest of the US and a strong presence on the West Coast. While the combined AMR-LCC network should attract higher high-yielding business customers and AAL has opportunity to trim currently unprofitable off-peak flying, airline mergers are difficult and synergies could be more protracted than most assume. Multiples not overly aggressive and industry fundamentals improved.” American Airlines Group closed on Monday at $35.16.