👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Melius sees Alaska Air stock as top domestic airline play with strong growth outlook

EditorAhmed Abdulazez Abdulkadir
Published 12/11/2024, 08:52 AM
ALK
-

On Wednesday, Melius Research maintained a positive outlook on Alaska Air (NYSE:ALK), reiterating a Buy rating and a $72.00 price target for the airline's shares. The firm's analyst highlighted Alaska Air as a standout in the U.S. domestic airline sector, suggesting it might be one of the most underappreciated companies in the travel industry.

The analyst's comments underscored the potential for Alaska Air's earnings to double over the next three years, which could lead to a reevaluation of the company's current market valuation. The assertion is that even if Alaska Air achieves only 80% of its projected targets, the share price could reach into the triple digits, up from its current price of $61.

The endorsement of Alaska Air's stock comes after a notable 13% surge in its share price on Tuesday. The firm encourages investors to continue focusing on Alaska Air, as it believes the airline is at the beginning of a positive revision cycle.

The analyst also pointed to several factors that could contribute to Alaska Air's success, including reasonable synergy expectations, network potential, and the broader airline industry's efforts to improve margins. These elements position Alaska Air to potentially outperform its peers in the sector.

In summary, Melius Research's outlook for Alaska Air is based on a combination of the airline's strong performance potential and the broader industry dynamics that could favor the company's growth and market reevaluation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.