Shares of American Airlines (NASDAQ:AAL) are getting a lift early Monday as TD Cowen and Jefferies both upgraded the stock to Buy from Hold with Cowen raising its target price to a street high of $25.

The upgrades come as American Airlines has seen a substantial improvement in its domestic market, with competitors making cuts and network changes that have led to increased pricing power. Analysts expect this trend to positively affect American's performance, along with the airline's strategic positioning and fleet enhancements.

AAL is a chip shot from its Dec. 10 two-year high of $18.20. Since that peak, the shares have consolidated around $17, with their 100-day moving average catching last week's pullback. Year-over-year, the equity is now 30.3% higher.

American Airlines Group Inc.’s stock gained 3.2% on Monday, after a slew of upgrades that acknowledged the company is coming out of transitory 2024 challenges to a better backdrop in 2025. The big airlines are in better shape than low-cost and ultralow-cost carriers,

Raymond James upgraded American Airlines Group (NASDAQ:AAL) to "Outperform" from "Market Perform" on an improved revenue outlook and a favourable risk-reward dynamic. The brokerage also raised its price target for the stock

American Airlines' stock is poised for a strong 2025 as the carrier emerges from a challenging year, according to brokerages Jefferies and TD Cowen, who upgraded the stock to a "buy" rating on Monday.