S&P Capital IQ Reiterates its HOLD Rating on AMR Corp, Target Price Reduced

October 20 00:00 2011

New York, October 20 (RainbowNewsLine.com) – Analyst Jim Corridore of S&P Capital IQ reiterates his BUY rating on the shares of AMR Corp.(NYSE:AMR). The target price has been reduced from $6.00 to $3.50.

Analyst Jim Corridore, in a research note published yesterday mentions that the company reported higher than expected loss for Q3 due to higher landing fees, maintenance charges and other costs.  There is no financial reason for bankruptcy for AMR in the upcoming year as AMR’s cash balance is $4.8 billion which is sufficient to fund operations, pay debt and to buy planes, the analyst says. However, the lack of movement on pilot agreements, pilot retirements and need for capital requirements pose risk, the analyst adds. S&P categorizes AMR as a high risk stock.