Frontier Group cut to Underperform at BofA in low-cost carrier ratings swap

As previously reported, BofA downgraded Frontier Group (ULCC) to Underperform from Neutral with a price target of $4, down from $5. The firm views potential economic stimulus as helpful for low-cost carriers, but notes Frontier is relatively expensive excluding sale-leaseback gains. The firm is swapping ratings on the low-cost carriers with its upgrade of Allegiant Travel (ALGT) to Neutral and downgrade of Frontier.