American Airlines, StubHub among stocks hit by analyst downgrades

2026-03-05 15:39:18 ET

A wave of analyst downgrades and price target cuts hit several US-listed stocks, including American Airlines, Grocery Outlet, StubHub, Edison International, and Tencent Music, Benzinga reported Thursday.

Several targets were also reduced, in some cases near or below the latest closing prices.

Separately, a Seeking Alpha analysis reiterated concerns about American Airlines’ risk profile relative to peers, pointing to higher per-unit costs and greater leverage.

American Airlines cut to Neutral with lower target

Rothschild & Co analyst James Goodall downgraded American Airlines Group Inc (NASDAQ: AAL) from Buy to Neutral and reduced the price target from $17 to $12.5, according to Benzinga.

American Airlines shares closed at $12.46 on Wednesday.

Grocery Outlet and StubHub see sharp target reductions

Jefferies analyst Corey Tarlowe downgraded Grocery Outlet Holding Corp (NASDAQ: GO) from Buy to Hold and cut the price target from $18 to $7.

Grocery Outlet shares closed at $8.79 on Wednesday.

JP Morgan analyst Doug Anmuth downgraded StubHub Holdings Inc (NYSE: STUB) from Overweight to Neutral and lowered the price target from $22 to $10.

StubHub shares closed at $10.17 on Wednesday.

Utilities and music names also downgraded

Ladenburg Thalmann analyst Paul Fremont downgraded Edison International (NYSE: EIX) from Neutral to Sell and set a $63 price target.

Edison International shares closed at $73.89 on Wednesday.

Macquarie analyst Ellie Jiang downgraded Tencent Music Entertainment Group – ADR (NYSE: TME) from Outperform to Neutral and announced a $14.1 price target.

Tencent Music shares closed at $14.14 on Wednesday.

Why AAL’s risk profile is back in focus

According to a Seeking Alpha analysis, American Airlines remains the “riskiest” stock among major US carriers, even after a nearly 70% share price decline since 2018.

The piece said macro indicators suggest the US airline sector is at a stable “cruising altitude,” with 2026 revenue growth likely to reach 3.5% to 4%.

The analysis contrasted that backdrop with a consensus forecast for AAL’s 2026 revenue growth of 9%, noting the company is coming from a lower base and is pursuing restructuring to improve efficiency.

Still, the author highlighted ongoing balance sheet and cost concerns, citing net debt plus leases equal to 48% of total assets, nearly double United Airlines, and per-unit costs above Delta and United.

Given those risks, the analysis favored Delta Air Lines for domestic exposure and International Consolidated Airlines for international exposure, while avoiding AAL for now.

The takeaway

Wednesday’s downgrades placed pressure on a range of names across airlines, retail, utilities, and music, with multiple price targets now close to recent trading levels.

For American Airlines, the rating cut came alongside renewed scrutiny of leverage and costs that, according to Seeking Alpha, leave the stock more vulnerable than peers.

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