AMR's (NYSE:AMR) 2011 Performance Weakened on Slowing Cash Generation

Commenting on the latest quarterly results of AMR (NYSE:AMR), Barclays (NYSE:BCS) noted the expected decrease in cash generation by the company will weaken 2011 catalysts.

Barclays says, "The result was slightly better than our estimate ($0.37) and in line with the street ($0.32). Collectively, guidance from the release and call looks reasonably in line leaving our 2011 estimate unimportantly lower. Unfortunately, however, the cash generation we expected in 2011 declines as the company's CAPX guidance for 2011 changed meaningfully. We still see significant optionality in AMR, but the change in cash generation weakens what we expected to be a strong catalyst for performance in 2011.

"2011 estimate unimportantly unchanged: We have tweaked our model to reflect slightly higher non-fuel cost guidance driving a small reduction to our 2011 estimate from $1.00 to $0.90."

Barclays reiterates an 'Overweight' rating on AMR Corp (AMR), which closed Thursday at $7.53, down $0.16, or 2.08 percent. Barclays has a price target of $18 on AMR.