Wells Fargo has started coverage of American Airlines Group Inc. with an Equal Weight rating and a $17 price target, highlighting the airline's new co-branded card deal and upgraded cabins as positive stock drivers. This move comes as Wells Fargo executes a strategic overhaul, focusing on substantial divestitures and aiming to cut costs by up to $10 billion annually. The bank has already agreed to sell its rail lease portfolio and completed the sale of its non-agency third-party commercial mortgage servicing business, all while targeting a medium-term return on tangible common equity of 17-18%.
“Wells Fargo · initiated coverage of · American Airlines Group Inc. · with an Equal Weight rating and a $17 price target”
“Wells Fargo · noted · the airline's new co-branded card deal and upgraded cabins · were positive drivers for the stock”
“Wells Fargo · noted · the debut of the AAdvantage Globe credit card · should drive high-margin mileage sales from 2026 onwards”
“Wells Fargo & Company · has been pursuing · a strategic exit from various non-core and lower-return businesses · true”
“Wells Fargo & Company · aims to cut costs significantly · targeting up to $10 billion annually · true”
“Wells Fargo & Company · agreed to sell · its rail lease portfolio · in May 2025”
“Wells Fargo & Company · completed the sale of · its non-agency third-party commercial mortgage servicing business · in March 2025”
“Wells Fargo & Company · sold · approximately $2 billion of private equity fund investments · in 2023”
“Wells Fargo & Company · sold · its Institutional Retirement & Trust business · in 2019”
“Wells Fargo & Company · divested · its auto finance segment in Puerto Rico · in 2018”
“Wells Fargo · cut the price target of · Air Products and Chemicals, Inc. (NYSE:APD) · to $250 from $330”
“Wells Fargo · cited · channel checks pointing to 'trough-like conditions' · lingering into the first half of 2026”
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