Key Takeaways Shares of American Airlines surged Monday after brokerage firms Jefferies and TD Cowen upgraded their ratings to "buy" and raised their price targets on the carrier's stock.Jefferies said the stock "could see significant surprise to the upside in 2025.

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.

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.

American Airlines Group Inc.’s stock soared 5% 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,

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.