Jefferies downgraded AAL and DAL to "hold"
American Airlines Group Inc (NASDAQ:AAL) and Delta Air Lines Inc (NYSE:DAL) stocks are sliding today, after Jefferies downgraded both airline giants to "hold" from "buy" and issued deep price-target cuts. The analyst cited rising macroeconomic uncertainty and softening corporate travel demand, adding that weak March exit rates could weigh on critical summer bookings. Jefferies slashed its price target on DAL to $46 from $85, and on AAL to $12 from $20.
American Airlines stock was last seen 1.7% lower at $10.37 in premarket, on track to extend its 2025 deficit to 39.5%. AAL remains locked in a long-term downtrend, with a late-January bear gap and pressure from its 20-day moving average keeping the equity near its lowest level since August.
Delta Air Lines stock is down 2% to trade at $42.75, looking to add to its 28% year-to-date loss. DAL dropped 28.2% over the last three months and just yesterday hit its lowest level since August, with the 10-day moving average reinforcing short-term resistance.
Both airline stocks could face further headwinds if additional bearish analyst attention rolls in. Heading into today, 12 of 20 brokerages still rated AAL a "buy" or better, while all 21 covering analysts maintained a "strong buy" rating on DAL -- leaving plenty of room for downgrades that could spark more downside pressure.