American Airlines (AAL, Financial) has revealed plans to offer complimentary Wi-Fi on its aircraft outfitted with ViaSat (VSAT) and IntelSat technology. This move signifies a major development for ViaSat, noted for being the leading global provider of inflight connectivity. The company currently supports Wi-Fi across more than 3,950 aircraft, with a further 1,570 awaiting service.
ViaSat serves as the Wi-Fi provider for nearly all of American Airlines' mainline fleet, amounting to approximately 1,000 aircraft. However, the deployment of ViaSat services on American's international fleet has faced hurdles due to delays in the launch of ViaSat's advanced satellite constellation, ViaSat-3.
Despite these delays, the announcement of free Wi-Fi marks a significant milestone in the partnership between American Airlines and ViaSat, underscoring the latter's pivotal role in enhancing inflight connectivity. William Blair, a financial services firm, maintains a Market Perform rating on ViaSat, reflecting cautious optimism about the company's prospects in light of the ongoing satellite deployment challenges.
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 $14.75 with a high estimate of $24.00 and a low estimate of $8.00. The average target implies an upside of 53.99% from the current price of $9.58. 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 2.3, 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 $12.38, suggesting a upside of 29.23% from the current price of $9.58. 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.
