Azul has initiated a comprehensive restructuring process involving key financial stakeholders, including American Airlines (AAL, Financial). The company plans to use Chapter 11 proceedings in the U.S. to facilitate this restructuring, which aims to eliminate over $2 billion in debt and streamline its financial commitments. Azul has secured approximately $1.6 billion in financing through debtor-in-possession arrangements. This funding will allow Azul to continue regular operations while addressing debt obligations and optimizing its fleet.
Part of this restructuring includes an equity rights offering, potentially raising up to $650 million, which is backed by financial partners and an additional proposed equity investment of up to $300 million from both United Airlines and American Airlines (AAL, Financial). This equity offering is contingent upon fulfilling specific conditions. The strategic involvement of American Airlines underscores its role in bolstering Azul's financial resilience during this challenging period.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for American Airlines Group Inc (AAL, Financial) is $13.07 with a high estimate of $20.00 and a low estimate of $8.00. The average target implies an upside of 12.29% from the current price of $11.64. More detailed estimate data can be found on the American Airlines Group Inc (AAL) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, American Airlines Group Inc's (AAL, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for American Airlines Group Inc (AAL, Financial) in one year is $16.38, suggesting a upside of 40.72% from the current price of $11.64. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the American Airlines Group Inc (AAL) Summary page.
