Jefferies analyst Sheila Kahyaoglu also raised its price target from American Airlines from $12 to $20 due to what she predicts to be continued increases in revenue per available seat mile (TRASM) as well as a stronger-than-expected earnings per share (EPS) of $1.79 in a 2024.

Shares of American Airlines surged Monday after brokerages Jefferies and TD Cowen upgraded and raised their price targets on the air carrier's stock.

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 stock was rising Monday as analysts at Jefferies, TD Cowen, and Melius Research upgraded shares of the carrier to Buy from Hold. Shares of American Airlines climbed 4.8% to $17.79, on track for the highest close since July 19,