5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - UBS has reiterated its Buy rating and $90.00 price target on Alaska Air (NYSE:ALK) despite the stock’s recent decline following a September earnings preannouncement. According to InvestingPro data, the stock appears undervalued at its current price of $48.45, with analysts setting targets between $55 and $96.
The airline’s shares have fallen 25% since its September 15 preannouncement, significantly underperforming both the JETS index (-4%) and S&P 500 (+1%) during the same period, according to UBS analyst commentary.
UBS notes that investor expectations have been reset lower, with the market now anticipating third-quarter earnings per share of approximately $1.00 and fourth-quarter results in the $0.75-$0.80 range, implying full-year 2025 earnings of roughly $2.75 per share.
These expectations fall below the current FactSet consensus of $2.93 and UBS’s own estimate of $2.99 for fiscal year 2025, suggesting potential upside if Alaska Air can deliver better-than-expected results.
UBS projects 2026 will bring "significant earnings acceleration" for Alaska Air as the company capitalizes on potentially favorable demand conditions while realizing synergies from its Hawaiian Airlines merger.
In other recent news, Alaska Air Group reported a record revenue of $3.7 billion for the second quarter of 2025, reflecting a 2% increase compared to the previous year. The company’s adjusted net income reached $215 million, with an adjusted earnings per share (EPS) of $1.78, surpassing its earlier guidance. These financial results highlight the company’s strong performance in the quarter. Additionally, Alaska Air is focusing on expanding its fleet and enhancing its loyalty program as part of its strategic growth plans. The company aims for significant growth in earnings by 2027. Despite the positive earnings report, Alaska Air’s stock experienced a slight decline in premarket trading. These recent developments underscore Alaska Air’s ongoing efforts to strengthen its market position and drive future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.