Wolfe Research analyst Scott Group downgraded Alaska Air to Peer Perform from Outperform without a price target. The analyst also lowered the firm’s Airline sector rating to Market Underweight from Market Weight. The airline Index has rallied 20% year-to-date, which provides an opportunity to take profits, the analyst tells investors in a research note. Wolfe says RASM trends are slowing, and most airline guides for the year are now baking in a re-acceleration in RASM at the same time as capacity growth accelerates and fuel prices fall. This seems "like an unlikely combination," so earnings risk is building again, contends the firm.
Published first on TheFly
See today’s best-performing stocks on TipRanks >>
Read More on ALK: