Airline stocks are set up for a broad rally, led by American Airlines Group Inc. AAL, +5.48% shares, after Deutsche Bank analyst Michael Linenberg said it was time to buy into the sector as COVID-19 cases, hospitalizations and vaccination rates are all trending in the right direction. He upgraded nine U.S.-based airlines to buy from hold. “As our upgrade is a sector-wide call, we are of the view that all of our names could see material upside from current levels,” Linenberg wrote in a note to clients. Among the biggest premarket gainers, shares of American Airlines shot up 5.8%, JetBlue Airways Corp. JBLU, +3.45% rallied 2.1%, Delta Air Lines Inc. DAL, +2.91% rose 1.6%, Southwest Airlines Co. LU, -0.25% hiked up 1.3% and Alaska Air Group Inc. ALK, +3.97% tacked on 1.2%. Meanwhile, United Airlines Holdings Inc. UAL, +6.83% edged up 0.3%, after an engine on Flight 328 blew apart midflight on Saturday. The U.S. Global Jets ETF JETS, +2.94% climbed 1.4% ahead of the open, putting it on track to open at a one-year high, while futures ES00, -0.82% for the S&P 500 SPX, -0.19% fell 0.8%.
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