Analyst Thomas Fitzgerald CFA of TD Cowen maintained a Hold rating on Frontier Group Holdings, retaining the price target of $3.00.
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Thomas Fitzgerald CFA has given his Hold rating due to a combination of factors impacting Frontier Group Holdings. The company’s revenue fell short of previous expectations in the third quarter, largely due to competitive pricing pressures from rivals like Southwest and Spirit. While management remains hopeful about revenue growth in 2026, particularly with the introduction of first-class seating, Fitzgerald remains skeptical about the potential impact on the profit and loss statement.
Moreover, there are concerns regarding core earnings, excluding gains from sale-leaseback transactions, and anticipated cost pressures in areas such as labor, maintenance, and rent in 2026. The company is still negotiating a post-COVID labor agreement with its pilots, which could further influence costs. Despite management’s plans to increase capacity and take delivery of new aircraft, Fitzgerald maintains a cautious outlook, reflected in the Hold rating and a price target of $3.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Hold with a $3.50 price target.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ULCC in relation to earlier this year.