On Wednesday, TD Cowen affirmed its confidence in shares of Alaska Air Group Inc. (NYSE: NYSE:ALK), increasing the airline's price target to $78 from $68 and maintaining a Buy rating. The firm also named Alaska Air as their second Top Pick.
During Alaska Air's investor day held in New York, management outlined the company's objectives through 2027, following its merger. Alaska Air's strategy is focused on expanding its network, enhancing its product offerings, growing its loyalty program, and boosting its cargo operations.
The airline anticipates these initiatives will lead to an additional $1 billion in pre-tax profit and an earnings per share (EPS) exceeding $10 by 2027.
The airline's management has expressed a commitment to consistent free cash flow (FCF) generation, aiming to reduce net leverage to 1.5 times. This financial strategy is expected to support a $1 billion share repurchase program.
The endorsement by TD Cowen reflects a positive outlook on Alaska Air's financial and operational strategy, suggesting that the airline is on a robust path to growth and shareholder value creation in the coming years.
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