Citi Begins Coverage on American Airlines (AAL) Amid Co-Branded Card Growth

American Airlines Group Inc. (NASDAQ:AAL) ranks among the best stocks under $25 to buy now. On December 18, Wells Fargo began coverage of American Airlines Group Inc. (NASDAQ:AAL), rating the stock Equal Weight and setting a price target of $17 on the company’s shares. The firm referenced American’s new co-branded card deal and improved main cabin economics as positive aspects, though it added that these advantages are outweighed by heightened debt levels and the demand for premium service upgrades.

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Wells Fargo stated that American Airlines Group Inc. (NASDAQ:AAL) is poised to benefit significantly from its exclusive co-brand agreement with Citibank in 2026, with financial remuneration expected to increase by approximately 10% per year to $10 billion by 2030.

American Airlines Group Inc. (NASDAQ:AAL) is also exploring the use of Amazon.com Inc.’s Leo satellite-based internet service for in-flight Wi-Fi as part of a bid to attract premium customers and strengthen its competitive edge against rival US carriers. Amazon’s satellite network, formerly known as Project Kuiper, currently comprises around 150 satellites in orbit. The company intends to develop this to a system with over 3,200 units.

American Airlines Group Inc. (NASDAQ:AAL) is a major airline that provides passenger and cargo air transportation services. It operates an extensive network of domestic and international flights, serving over 350 destinations in more than 60 countries.

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Disclosure: None. This article is originally published at Insider Monkey.