Alaska Air Upgraded to Buy by Deutsche Bank (ALK)
Alaska Air (NYSE: ALK) was upgraded by equities researchers at Deutsche Bank from a “hold” rating to a “buy” rating in a report issued on Tuesday, TheFlyOnTheWall.com reports.
The analysts wrote, “We are raising our rating on Alaska Air Group shares from Hold to Buy due to a stronger earnings outlook, an improving credit profile, and a more favorable competitive backdrop. We also believe the recent 11% correction in the share price represents a more attractive entry-point for investors. Lastly, we are of the view that Alaska’s growing equity value (recently topped $4 billion) will help broaden its investor base which we think should minimize its valuation discount to other legacy/growth airlines.”
Alaska Air (NYSE: ALK) traded up 5.47% on Tuesday, hitting $59.73. Alaska Air has a 1-year low of $31.29 and a 1-year high of $64.55. The stock’s 50-day moving average is currently $58.35. The company has a market cap of $4.201 billion and a price-to-earnings ratio of 12.87.
Alaska Air (NYSE: ALK) last released its earnings data on Thursday, January 24th. The company reported $0.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.71 by $0.01. The company had revenue of $1.13 billion for the quarter, compared to the consensus estimate of $1.12 billion. During the same quarter in the prior year, the company posted $0.51 earnings per share. The company’s quarterly revenue was up 8.4% on a year-over-year basis. On average, analysts predict that Alaska Air will post $5.54 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on ALK. Analysts at Capital One initiated coverage on shares of Alaska Air in a research note to investors on Friday. They set an “in-line” rating and a $63.00 price target on the stock. Separately, analysts at Imperial Capital initiated coverage on shares of Alaska Air in a research note to investors on Friday. They set an “in-line” rating and a $63.00 price target on the stock. Finally, analysts at JPMorgan Chase raised their price target on shares of Alaska Air from $45.00 to $64.00 in a research note to investors on Friday, April 5th. They now have a “neutral” rating on the stock.
One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and eight have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $65.33.
Alaska Air Group, Inc. (NYSE: ALK) has two subsidiaries: Alaska Airlines, Inc.
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