Citi Raises Price Target On Alaska Air Group To $79

According to Citi, Alaska Air Group ALK target is raised to $79 from $77. Citi said that ALK reported May 2011 revenue growth of about 14% YoY on an 8.3% increase in RASM and 5.2% lift in capacity. “We see ALK as a hidden gem among airlines as result of its attractive valuation and more stable returns profile supported by a: (1) balanced network including dominant hubs; (2) young fleet (17% fuel efficiency advantage versus the industry); and (3) conservative call/cap-only fuel hedging strategy.” Alaska Air Group closed yesterday at $62.60.