UPDATE: J.P. Morgan Downgrades AMR on Lack of Upside Potential
In a report published Wednesday, J.P. Morgan analyst Jamie Baker downgraded the rating on AMR (OTC: AAMRQ) from Overweight to Neutral, but raised the price target from $9.50 to $10.50.
In the report, J.P. Morgan noted, “Settlement momentum allows us to boost our AMR-LCC merger probability to the 70-75% range, from last month's 60% level. According to our otherwise-unchanged analysis, this supports a revised fair value of $10.50 for AAMRQ, assuming deal/no-deal goal posts of $13.00/$3.50. Given the paucity of forecasted upside potential from current levels, the economic uncertainty associated with settlement concessions, and lack of downside clarity, our earlier Overweight rating drops to Neutral.”
AMR closed on Tuesday at $9.68.
Latest Ratings for AAMRQ
|Nov 2013||JP Morgan||Downgrades||Overweight||Neutral|
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