UPDATE: Imperial Capital Initiates Alaska Air Group at In-Line on Justified Premium Valuation

In a report published Friday, Imperial Capital analyst Bob McAdoo initiated coverage on Alaska Air Group ALK with an In-Line rating and $63.00 price target. In the report, McAdoo noted, “We believe ALK represents one of the better-run airlines, with its traditional product offering and long history casting it in the role of a legacy airline. It operates in a series of attractive somewhat less competitive markets centered in the Pacific Northwest and Western U.S. The company's careful expansion has allowed it to grow but maintain some of the highest margins of the legacy carriers. ALK's growth has often filled in capacity where others have retreated. Nonetheless, we believe ALK's strengths are well understood by the Street. Its premium valuation appears justified based on its performance. Accordingly, we expect the shares to trade in tandem with its peers and we rate ALK In-Line.” Alaska Air Group closed on Thursday at $59.38.