Consequently, Deutsche Bank has raised AAL and DAL to Buy from Hold, “as we think at current levels they represent an attractive entry-point compared to our 12 month price targets.”
Looking ahead, Deutsche Bank believes that energy prices will continue to play a role on the airline industry outlook.
“If sustained, could spell upside for EPS estimates,” Linenberg added.
Oil prices have jumped over 20% in the past week but dipped on Tuesday. Given the current swing, Linenberg argues that any micro and macro concerns have been “more than fully discounted in [airline]share prices.”
U.S. Global Jets ETF
For more information on the airline industry, visit our airlines category.
Max Chen contributed to this article.