Frontier Group Holdings (ULCC – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Thomas Fitzgerald CFA from TD Cowen maintained a Hold rating on the stock and has a $3.00 price target.
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Thomas Fitzgerald CFA has given his Hold rating due to a combination of factors impacting Frontier Group Holdings. The company recently revised its financial guidance downward, citing weaker-than-expected demand and fare discounting as significant challenges. Management’s updated expectations for revenue growth and pre-tax margins fall short of consensus estimates, indicating potential financial struggles in the near term.
Furthermore, the airline is facing operational adjustments, including capacity cuts, which are expected to persist throughout the year. While management remains optimistic about the cost structure’s ability to navigate these challenges, Fitzgerald highlights ongoing risks related to changes in the booking curve by legacy carriers and potential reductions in consumer discretionary spending. These factors contribute to a cautious outlook, justifying the Hold rating and a price target of $3.
In another report released on April 7, Susquehanna also maintained a Hold rating on the stock with a $3.00 price target.