Analyst Andrew Didora of Bank of America Securities reiterated a Buy rating on Alaska Air, reducing the price target to $62.00.
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Andrew Didora has given his Buy rating due to a combination of factors that highlight Alaska Air’s strong market position and potential for future growth. Despite the recent increase in West Coast jet fuel prices following a refinery fire, which has led to a reduction in earnings estimates, Didora maintains a positive outlook on the company’s ability to recover and thrive. The airline’s strong foothold in the Pacific Northwest, along with its exposure to brand-loyal and corporate revenue streams, positions it well for sustained success.
Furthermore, Alaska Air’s conservative balance sheet provides a solid foundation for weathering current challenges and capitalizing on future opportunities. Didora also notes the airline’s potential for revenue growth, particularly in the premium and corporate segments, which could drive earnings higher in the coming quarters. This optimistic view is reflected in the Buy rating, with a price objective set at $62, indicating confidence in the company’s long-term prospects despite short-term hurdles.
In another report released on October 6, Morgan Stanley also maintained a Buy rating on the stock with a $80.00 price target.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ALK in relation to earlier this year.