Imperial Capital Lowers 1Q15 and 2015 Estimates for Alaska Air Group, Inc.

In a report published Monday, Imperial Capital analyst Bob McAdoo reiterated an Outperform rating and $86.00 price target on

. In the report, Imperial Capital noted, "We are maintaining our Outperform rating and one-year price target of $86 on ALK shares. Our conversations with investors continue to suggest concerns regarding the increases in competitive capacity from Delta Air Lines in Seattle, despite record 2014 operating results for ALK. In contrast to this investor chatter, we believe softer 1Q15 PRASM trends appear to be driven by Alaska's own capacity growth rather than any competitive pressures. ALK is increasing 1Q15 capacity by 11.0%, the second highest growth of any airline we currently cover. As these new routes mature, we expect revenue trends to improve or ALK management will likely reallocate these aircraft to other routes. Given the strength of ALK's balance sheet, we expect the company to pass along a meaningful portion of fuel-driven cash savings to ALK investors through additional share repurchases. Our price target represents approximately 30% of potential upside from recent trading levels." Alaska Air Group, Inc. closed on Friday at $66.66.