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 lowers frontier group price target amid airline industry challenges
UBS has cut its price target for Frontier Group Holdings Inc to €7.00 from €10.00, maintaining a Neutral rating, as the airline faces ongoing challenges in consumer demand and financial health. Despite a recent earnings surprise with EPS of €0.23, analysts have revised EPS forecasts downward, reflecting broader industry weaknesses. Frontier's future outlook for 2025 anticipates at least €1.00 in EPS, supported by strategic initiatives aimed at improving operational efficiency.
ubs lowers frontier group stock target amid airline demand challenges
UBS analyst Thomas Wadewitz has cut the price target for Frontier Group Holdings Inc. to $7 from $10, maintaining a Neutral rating as the airline faces ongoing consumer demand challenges. Despite a 36.7% gain over the past six months, the stock is currently trading at $5.70, significantly below its 52-week high. Analysts project a 30% decrease in earnings per share for Frontier, reflecting broader softness in the airline industry, while the company reported a surprising EPS of $0.23 in Q4 2024, exceeding expectations.
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.
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