Frontier Group hits record low after Evercore downgrade, PT cut

Sun Country Airlines Holdings

18/09/2023 16:31

** Shares of Frontier Group  ULCC.O , the parent of low-cost
carrier Frontier Airlines, fall 4.8% to $5.26 - a record low
    ** Brokerage Evercore ISI downgrades stock to "in line" from
"outperform"
    ** Evercore also trims PT to $7 from $10, the lowest among
Wall Street analysts - LSEG data; still represents a 26.35%
upside to stock's last close
    ** Brokerage says it is moving to sidelines given company's
persistently weak margins and volatility in revenue and margin
outlook
    ** Company's limited time to build a base of bookings and
tougher operational performance this quarter likely contributed
to the weakness - Evercore
  ** Frontier earlier this month cut Q3 margin forecast to
reflect higher fuel prices and a greater volume of recent
operational cancellations
    ** Peers such as Sun Country Airlines  SNCY.O  and Allegiant
Travel  ALGT.O  can better shape capacity to meet seasonal
demand patterns - Evercore
    ** Of 12 analysts covering ULCC, 6 each rate "buy" or
higher, and "hold"; median PT at $11 - LSEG 
    ** ULCC down 48.6% YTD, including session losses

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))