tiprankstipranks
Frontier Group Gains Ground with New Analyst Support
Market News

Frontier Group Gains Ground with New Analyst Support

For airline stock Frontier Group (NASDAQ:ULCC), Friday proved a big day as its shares closed up 10.52%. Several reasons contributed to the gain, but easily the biggest was a new outlook from Citi, which breathed new life into the airline.

Starting just hours ago, Citi started up a “positive 90-day catalyst watch” on Frontier Group, which basically means something particularly good is likely to happen in the next few months. Citi had a range of reasons for opening up such a watch, starting with an array of new takeoff and landing slots, as well as several gates at New York’s LaGuardia Airport. That suggests quite a bit of new traffic could be going through Frontier in the near term, and new traffic means new revenue.

However, that wasn’t all Citi pointed out. Citi also noted that Frontier stock has been underperforming so far this year, a point which opens up room for a new rally. A Simply Wall St. report noted that Frontier Group is down 24% in the last year, well ahead of the overall market decline of 1%. Those wondering how Frontier landed all those new slots need to look no further than JetBlue (NASDAQ:JBLU). JetBlue’s recently-forged—and even more recently-dissolved—alliance with American Airlines (NASDAQ:AAL) left JetBlue with a few extra slots that someone needed to fill. Those slots went to Frontier Group.

Frontier Group also enjoys a decent amount of analyst support and is currently considered a Moderate Buy thanks to five Buy ratings and two Holds. Better yet, Frontier Group stock also offers investors 59.52% upside potential thanks to its average price target of $14.58 per share.

Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles