Frontier Group downgraded to Market Perform from Outperform at TD Cowen

TD Cowen downgraded Frontier Group to Market Perform from Outperform with a price target of $8, down from $12, following management’s latest guidance update. Changes in the firm’s model reflect management’s latest outlook for Q3 as well as its own updated expectations for FY24, says the analyst, who expects Q3 consensus EPS forecasts to be revised lower across the Street after Frontier management noted that guidance changes reflect “a substantial unexpected change in their booking trajectory as sales are trending below historical seasonality patterns.” Higher fuel cost, greater than expected cancellations driven by Tropical Storm Hilary, Hurricane Idalia, and a broadly challenging operating environment were also cited, the analyst notes.