Alaska Air’s Strategic European Expansion and Seattle’s Transformation into a Global Gateway: A Buy Recommendation by Ravi Shanker

Analyst Ravi Shanker of Morgan Stanley maintained a Buy rating on Alaska Air (ALK – Research Report), reducing the price target to $83.00.

Ravi Shanker has given his Buy rating due to a combination of factors, primarily focusing on Alaska Air’s strategic expansion into Europe. The announcement of direct flights from Seattle to Rome marks an earlier-than-expected move into the European market, which was initially anticipated to occur later in their 12-destination plan. This proactive approach by management demonstrates their commitment to growth and positions Alaska Air as a strong contender in the transatlantic market, which currently shows more robust fundamentals compared to transpacific routes.
Moreover, the new Seattle to Rome route is seen as a significant step in transforming Seattle into a premier global gateway on the West Coast. The choice of Rome, a highly requested destination by Mileage Plan members, underscores the airline’s responsiveness to customer demand and strategic market positioning. Management’s plan to announce new routes annually, coupled with the anticipated benefits from the integration with Hawaiian Airlines, further supports the positive outlook for Alaska Air, making it Morgan Stanley’s top pick in the airline sector.

Shanker covers the Industrials sector, focusing on stocks such as Alaska Air, Allegiant Travel Company, and FedEx. According to TipRanks, Shanker has an average return of -2.5% and a 45.92% success rate on recommended stocks.