Susquehanna analyst Christopher Stathoulopoulos has reiterated their neutral stance on ULCC stock, giving a Hold rating on February 10.
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Christopher Stathoulopoulos’s rating is based on a combination of factors, including updated estimates and a cautious view of the ultra-low-cost business model. The analyst has revised the price target for Frontier Group Holdings to $9 from $8, reflecting a stronger operating margin in future years, though with some adjustments to core assumptions such as available seat miles (ASMs), total revenue per available seat mile (TRASM), and cost per available seat mile excluding fuel (CASM-ex).
Stathoulopoulos also highlights potential upside catalysts such as seasonal outperformance in leisure and business travel volumes, accelerated debt reduction, and a sustained decline in fuel prices. However, he notes downside risks including a possible drop to $7 per share, driven by applying a 3.5x EV/EBITDAR multiple on a bear-case scenario and higher net debt. These elements together contribute to the Hold rating, suggesting a neutral stance given the balanced view of potential opportunities and risks.
In another report released on February 10, TD Cowen also reiterated a Hold rating on the stock with a $10.00 price target.
Based on the recent corporate insider activity of 63 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.