Market Overview

UPDATE: Deutsche Bank Downgrades Alaska Air Group on Growing Competition

Share:

In a report published Monday, Deutsche Bank analyst Michael Linenberg downgraded the rating on Alaska Air Group (NYSE: ALK) from Hold to Sell, but reiterated the $70.00 price target.

In the report, Deutsche Bank noted, “We are lowering our rating on Alaska Air Group to Sell from Hold following recent announcements by Delta to add even more service from Alaska's key Seattle hub and by Alaska to now start flying from Salt Lake City, a key Delta hub, to four West Coast cities. We view these measures as retaliatory on the part of Alaska in response to Delta's significant growth in its Seattle backyard. Furthermore, the recent moves by both “partners” suggest that their long-standing code share and marketing agreements could be unraveling. While these actions are negative for both airlines, the fact that Delta is roughly 8x the size of Alaska (i.e. $38 billion of revenue estimated for 2013 vs. Alaska's $5 billion) leads us to believe that Alaska will be disproportionately impacted.”

Alaska Air Group closed on Friday at $73.51.

Latest Ratings for ALK

DateFirmActionFromTo
Apr 2019Credit SuisseMaintainsOutperformOutperform
Mar 2019BuckinghamMaintainsBuyBuy
Mar 2019Imperial CapitalDowngradesOutperformIn-Line

View More Analyst Ratings for ALK
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Michael LinenbergAnalyst Color Downgrades Analyst Ratings

 

Related Articles (ALK)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
PEPMorgan StanleyReiterates137.0
AZRXH.C. WainwrightMaintains7.0
PEPMacquarieMaintains138.0
POLBuckinghamMaintains36.0
BKBuckinghamMaintains53.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

UPDATE: Cantor Fitzgerald Downgrades Given Imaging Following Announcement of Sale to COV

UPDATE: FIG Partners Initiates Coverage on DNB Financial on Multiple Positive Factors