Investing.com — Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week.
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American Airlines
What happened? On Monday, Raymond James upgraded American Airlines (NASDAQ:AAL) to Outperform with a $24 price target.
*TLDR: New Citi card deal (2026 Citi is transitioning the remainder of Barclays AAL Customer book for branded Credit Card LINK) to increase remuneration.
What’s the full story? Raymond James upgraded American Airlines from Market Perform to Outperform, citing an attractive risk-reward profile and above-consensus forecasts. The analysts highlighted an improved revenue outlook, competitive capacity setup, and better engagement with corporate customers. American increased its 4Q24 y/y RASM guidance to 0-1% and adjusted EPS from $0.25-0.50 to $0.55-0.75.
The new 10-year co-branded card deal with Citi, effective in 2026, is expected to boost cash remuneration by ~10% annually, setting American on a path to reach Delta’s long-term target by 2030. Despite being pre-revenue, the deal positions American for sustained cash remuneration growth.
Outperform at Raymond James means “The security is expected to appreciate and outperform the S&P/TSX Composite Index over the next 12-18 months.”
Vertex
What happened? On Tuesday, DA Davidson initiated coverage on Vertex (NASDAQ:VRTX) at Buy with a $62 price target.
*TLDR: DA Davidson analysts endorsed Vertex’s sustained value capture. Analysts praised Vertex’s growth and competitive strength.
What’s the full story? DA Davidson analysts believe that Vertex has exhibited multiple attributes of sustained value capture and per-share compounding. They highlighted the company’s presence in a market characterized by steady growth and favorable disruptive catalysts. According to the analysts, Vertex’s competitive moat was strengthened by its unparalleled “referenceability”, and its cost infrastructure was conducive to margin accretion.
Additionally, the analysts commended Vertex’s management team for their disciplined capital allocation and aligned incentives, which further supported the company’s growth trajectory. These combined factors underscored the analysts’ positive outlook on Vertex’s long-term value and performance.
Buy at DA Davidson means “Expected to produce a total return of over 15% on a risk adjusted basis over the next 12-18 months.”
Alphabet
What happened? On Thursday, JMP Securities downgraded Alphabet (NASDAQ:GOOG) to Market Perform
*TLDR: JMP Securities downgraded Alphabet due to anti-trust penalties. Analysts awaited legal clarity on Google’s U.S. search distribution.
What’s the full story? JMP Securities downgraded Alphabet due to the potential impact of anti-trust penalties on Google (NASDAQ:GOOGL)’s U.S. search distribution and revenue. The analysts expected the final ruling by August 2025 to be a major focus for investors, limiting multiple expansion despite enforcement likely being years away due to appeals.
The analysts expect a “severe” court decision, given European regulators’ failure to affect the search market, and were comfortable moving to the sidelines after a 37% return in 2024, awaiting greater legal clarity before becoming positive again, and saw shares as fairly valued.
Market Perform at JMP Securities means “Citizens JMP Securities, LLC expects the stock price to perform in line with the Russell 3000® Index over the next 12 months.“
Block Inc.
What happened? On Friday, Raymond James upgraded Block Inc (NYSE:SQ) to Outperform with a $115 price target.
*TLDR: RaymondJames upgraded Block due to confidence in 2025. Analysts optimistic about Seller GPV acceleration and growth.
What’s the full story? Raymond James upgraded Block after analyzing the building blocks of Seller GPV, expressing confidence in a 2025 acceleration. They considered Seller GPV the most crucial metric, forecasting growth could return to double digits in 2025 due to easing comparisons, improved distribution, international expansion, and product innovation.
Despite acknowledging Cash App’s stagnant user growth, the analysts were optimistic about maintaining gross profit growth through increased engagement within the existing customer base. They had high confidence in Seller GPV’s acceleration, felt estimates were well-positioned, and deemed the stock inexpensive for its growth potential.
Outperform at Raymond James means “(MO2) The security is expected to appreciate and Outperform the S&P/TSX Composite Index over the next 12-18 months.”
