Analyst Ravi Shanker of Morgan Stanley maintained a Hold rating on Frontier Group Holdings, retaining the price target of $9.00.
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Ravi Shanker has given his Hold rating due to a combination of factors influencing Frontier Group Holdings’ current and future performance. Despite Frontier’s better-than-expected third-quarter results, which saw a 12% improvement in EBIT compared to consensus, the results were still slightly below Morgan Stanley’s estimates. The company’s guidance for the fourth quarter was largely in line with expectations, suggesting stability but not significant growth.
Looking forward, while there are positive developments such as the potential benefits from a competitor’s bankruptcy and internal initiatives like new routes and first-class seating, the earnings are expected to remain volatile in the short term. Additionally, the macroeconomic environment remains uncertain, and there are potentially more straightforward investment opportunities elsewhere. These factors combined lead to a cautious outlook, justifying the Hold rating.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Hold with a $3.50 price target.
Based on the recent corporate insider activity of 64 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 ULCC in relation to earlier this year.