Analyst Andrew Didora from Bank of America Securities reiterated a Hold rating on Frontier Group Holdings and keeping the price target at $4.00.
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Andrew Didora has given his Hold rating due to a combination of factors impacting Frontier Group Holdings. The company’s second-quarter earnings per share (EPS) of $(0.31) fell slightly below both his and the Street’s expectations, primarily due to lower yields and increased costs. Despite a notable improvement in demand since June, the third-quarter EPS guidance was also lower than anticipated, influenced by weaker revenues in July.
While there has been a positive trend in yields and load factors in August and September, with yields increasing by 5% and 15% respectively, the overall revenue growth remains constrained by reduced capacity. Although unit revenues are expected to improve, higher unit costs and a reduction in capacity have led to a downward revision in EPS estimates for both 2025 and 2026. Consequently, these mixed signals and financial adjustments have led Didora to maintain a Neutral rating on the stock.
According to TipRanks, Didora is a 3-star analyst with an average return of 3.0% and a 58.67% success rate. Didora covers the Industrials sector, focusing on stocks such as Allegiant Travel Company, Delta Air Lines, and Alaska Air.
In another report released today, UBS also maintained a Hold rating on the stock with a $3.50 price target.