UPDATE: Dahlman Rose Reiterates Buy Rating, Raises PT on Alaska Air Group on Common Shares Potential
In a report published Monday, Dahlman Rose reiterated its Buy rating on Alaska Air Group (NYSE: ALK), and raised its price target from $53.00 to $63.00.
Dahlman Rose noted, “Our estimate is slightly below the consensus estimate of $5.45, but that is skewed by one high estimate; ex-ing out that estimate, we are in line with the consensus. Our multiple of 12x this year's EPS is in line with our estimate for EPS growth (12% from 2012's level). Based on Alaska Air's aircraft on order, we estimate the company will grow by about 6%-8% annually. The company just opened a fifth crew base in San Diego, and is likely to expand from that market over the next few years. San Diego is the next logical market on the West Coast for the company's growth.”
Alaska Air Group closed on Friday at $52.40.
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