Alaska Air Group, Inc. (ALK) Upgraded to Buy, Positive Catalysts Ahead
Credit Suisse analyst Julie Yates weighed in on Alaska Air Group, Inc. (NYSE:ALK) in light of upcoming catalysts. Yates upgrades the airline group from Neutral to Outperform and raises her price target from $70 to $85.
The analyst is bullish on the stock thanks to its “attractive relative valuation on pro forma estimates” and “improving unit revenue trends.” Furthermore, she points to catalysts such as the progression of “integration planning” with Virgin America, as the deal is scheduled to close in the second half of the year. She comments, “Following Southwest (LUV)’s disappointment, we expect investors looking for domestic rotation ideas will find ALK increasingly attractive at current levels.”
According to TipRanks, 6 analysts are bullish on Alaska Air and 1 is neutral. The average 12-month price target between these 7 analysts is $82, marking a 27% potential upside from current levels.