{
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UBS has cut Allegiant Travel's stock target to $61 from $93 while maintaining a Neutral rating, citing a downturn in first-quarter trends and consumer weakness. Despite a recent earnings beat, Allegiant revised its capacity growth forecast down to 13% due to softer leisure travel demand. The company is also undergoing executive changes and focusing on debt reduction, with expectations of returning to profitability this year.
UBS has lowered its price target for Alaska Air Group Inc. to $75 from $87 while maintaining a "Buy" rating, citing weaker first-quarter performance and ongoing consumer softness. Despite a -16.42% YTD return, ALK shows potential with a P/E ratio of 16.86 and projected revenue growth of 26% for FY2025. Additionally, Alaska Air reported strong Q4 2024 earnings, with EPS of $0.97, surpassing expectations, and appointed Eric Edge as Vice President of Brand & Marketing to enhance its marketing strategy.
UBS has reduced Allegiant Travel's share price target from $93 to $61 while maintaining a Neutral rating, citing a downturn in airline trends and consumer weakness. Despite a significant drop in share price and a projected 34% decline in earnings per share, Allegiant reported better-than-expected Q4 2024 results, with EPS of $2.10 and revenue of $627.7 million. The company is also adjusting its capacity growth forecast and has announced leadership changes, with ongoing efforts to reduce debt and potentially sell its Sunseeker resort to strengthen its financial position.
The rollback of diversity, equity, and inclusion (DEI) initiatives by major corporations reflects a broader shift influenced by the Trump administration's policies. Companies like Target and McDonald's have scaled back their DEI commitments, citing the need to align with changing political landscapes, while others continue to navigate these challenges quietly. This retreat disrupts decades of progress aimed at reducing workplace discrimination and expanding opportunities for minorities and women.
American Airlines Group Inc. operates as a network air carrier, providing scheduled air transportation services through various hubs and partner gateways. Institutional investors hold 52.44% of the company's stock, which has received mixed ratings from analysts, with a consensus rating of "Moderate Buy" and a price target of $15.76. Recently, UBS upgraded the stock to "strong-buy," while other brokerages have varied in their assessments, reflecting a complex outlook for the airline's performance.
UBS has raised its price target for American Airlines to $19, citing the exclusive partnership with Citi for AAdvantage credit cards starting in 2026 as a key driver for loyalty growth and improved financial stability. The airline's EPS forecast for December has also been increased, reflecting positive momentum in the industry. Despite significant debt, American Airlines is positioned for sustainable growth, with analysts expressing confidence in its revenue potential.
[Bloomberg](https://www.bloomberg.com) and [SEC]
UBS has initiated coverage on U.S. airlines, projecting stronger revenue growth and improved profit margins by 2025. It has given "buy" ratings to Alaska Air Group, United Airlines, and Delta Air Lines, while assigning "neutral" ratings to American Airlines, Loyalty Ventures, and Frontier Group. Southwest Airlines and JetBlue Airways received "sell" ratings due to concerns over profit margins and financial stability.
UBS has initiated coverage on U.S. airlines, emphasizing the impact of supply and demand on RASM growth and margins through 2025. Buy ratings were assigned to Alaska Air, Delta, and United Airlines, while American, Allegiant, and Frontier received neutral ratings. Southwest and JetBlue were given sell ratings due to financial concerns, with industry-wide pretax margins projected to rise to 6.6% in 2025, supported by a forecasted 3.5-4.0% growth in passenger revenues.
A Senate subcommittee criticized U.S. airlines for generating $12.4 billion in seat fees from 2018 to 2023, despite eliminating ticket-change fees for standard economy tickets. The report highlights concerns over "junk fees" and the practices of budget airlines Spirit and Frontier, which faced scrutiny for enforcing bag policies. Airlines for America defended the industry, claiming it offers competitive pricing and value to customers.
American Airlines Group Inc.
Companies
| Symbol | AAL |
| Name | American Airlines Group Inc. |
| Currency | USD |
| Sector | Industrials |
| IndustryGroup | Transportation |
| Industry | Airlines |
| Market | NASDAQ Global Select |
| Country | United States |
| State | TX |
| City | Fort Worth |
| Zipcode | 76155 |
| Website | http://www.aa.com |
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
ubs lowers allegiant travel stock target amid consumer demand concerns
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