Andrew Didora, an analyst from Bank of America Securities, reiterated the Buy rating on Alaska Air. The associated price target remains the same with $62.00.
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Andrew Didora has given his Buy rating due to a combination of factors that suggest a positive long-term outlook for Alaska Air. Despite the current challenges with elevated jet fuel prices on the West Coast impacting near-term earnings, Didora believes these pressures will ease as we move into 2026. This expectation is based on improving fundamentals and the achievement of integration milestones, which are anticipated to enhance the company’s performance.
Additionally, Alaska Air is showing promising signs of growth with a projected capacity increase of 2-3% and a balanced unit revenue and cost outlook. The company is also making significant progress in its merger with Hawaiian Airlines, which is expected to contribute to its ambitious 2027 EPS target of $10. These strategic developments, coupled with a solid revenue trajectory and declining unit costs, underpin Didora’s confidence in the stock’s potential, leading to the reiterated Buy rating.
In another report released on October 20, UBS also maintained a Buy rating on the stock with a $90.00 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.