Goldman Sachs analyst Catherine O’Brien has maintained their bullish stance on ALK stock, giving a Buy rating on January 18.
Catherine O’Brien has given her Buy rating for Alaska Air’s stock based on a combination of factors, among which the company’s solid cost control during the December quarter and the encouraging outlook for the core business stand out. The company outperformed expectations for the December quarter and has released an earnings per share (EPS) guidance for the fiscal year 2024 that, despite being below the consensus, shows promise in the face of challenges such as the grounding of the 737 MAX 9 aircraft.
O’Brien’s optimism is further bolstered by Alaska Air’s revenue trends for the March quarter, which are expected to be positive year-over-year, against a backdrop of consensus expectations for a decline. Even with a modest reduction in the EPS forecast for fiscal year 2024 due to the temporary grounding of aircraft, O’Brien sees a strong upside potential of 31% to her price target of $49. This positive assessment, alongside the core business resilience, underpins the recommendation to buy Alaska Air stock.
In another report released on January 18, Citi also maintained a Buy rating on the stock with a $51.00 price target.
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Alaska Air (ALK) Company Description:
Alaska Air Group, Inc. is a holding company, which through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., engages in the provision of air transportation services. It operates through three segments: Alaska Mainline, Alaska Regional and Horizon. The Alaska Mainline segment includes flying Boeing 737 jets and all associated revenues and costs. The Alaska Regional segment records actual on-board passenger revenue, less costs such as fuel, distribution costs, and payments made to Horizon, SkyWest and PenAir under the respective Capacity Purchase Agreements. The Horizon segment operates turboprop Q400 aircraft. The company was founded in 1985 and is headquartered in Seattle, WA.
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