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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Alaska Air Group Inc
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Research Alert: CFRA Reiterates Buy Opinion On Shares Of Alaska Air Group Inc
Apr 21, 2026 9:38 AM

12:05 PM EDT, 04/21/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $6 to $53, 7.5x our 2027 EPS estimate (rolled forward from 10.5x our 2026 EPS view), a discount to the 10-year mean of 11.5x reflecting heightened earnings risk due to fuel cost volatility and geopolitical uncertainty. We lower our 2026 EPS to -$0.76 from $5.60 and 2027's to $7.02 from $8.00, primarily reflecting a $600M fuel cost headwind in Q2. Despite our estimate cuts, we maintain our Buy rating as we believe shares are trading at attractive levels, representing a 40% discount to their 10-year average forward multiple. We view this as a fuel-driven cyclical headwind rather than a structural deterioration in ALK's competitive position. Additionally, corporate travel (+19% Y/Y in Q1) and premium revenue (+9% Y/Y in Q1) suggest underlying demand remains healthy. While near-term earnings visibility is limited due to fuel volatility, we believe ALK's strategic positioning, operational execution (Hawaiian integration), and valuation discount create an attractive entry point.

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