Lehman Brothers upgraded American Airlines parent AMR Corp. (AMR ) to equal-weight from underweight.
Analyst Gary Chase says the upgrade is based on a fresh look at the company's relative profit potential. He says fall airline industry revenue is likely to show continued momentum; the company's revenue continue to outperform the industry at large, and AMR's relative profitability position is better than his prior assumptions.
Chase thinks investors may continue to reach for volatility in playing the budding economic recovery. He thinks AMR and other cyclical majors will trade very well through the fall.