Hudson Maintains Neutral on AMR Corp (AMR)

Hudson is out with its report today on AMR Corp AMR, maintaining Neutral. In a note sent to clients, Hudson writes, "No change to our $8 PT based on AMR's enterprise value trading at 8.0x our 2011E EBITDAR, with valuation support at current levels tied to the spinoff of AMR Eagle and a GDS resolution. Our Neutral rating and valuation remain tied to poor earnings visibility in 2011 given open labor contracts (some of which could presumably be resolved in 1H11) and the revenue risks associated with the GDS dispute. If shares fall below $6, the risk reward dynamic could become more appealing for those with an ability to hold longer-term & handle volatility." At the time of posting, shares of AMR were trading pre-market at $6.55, down 0.15% from Tuesday's close.