Alaska Air Group (NYSE:ALK) Given New $78.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley trimmed its price target on Alaska Air to $78 (from $80) but kept an overweight rating, a target that implies about an 86.47% upside from the current share price.
• Street coverage is mixed-to-constructive: the consensus is a Moderate Buy with a $64.46 average target, yet several brokers (TD Cowen, Goldman, UBS, Evercore) recently cut targets or adjusted ratings.
• Alaska Air missed Q1 EPS (-$1.68 vs. -$1.61), has suspended full‑year guidance and set Q2 EPS at -1.00 after warning of roughly a $600M jet‑fuel hit, creating near‑term margin risk and downward pressure on the stock.

Alaska Air Group (NYSE:ALK - Get Free Report) had its target price dropped by equities research analysts at Morgan Stanley from $80.00 to $78.00 in a research note issued to investors on Wednesday,MarketScreener reports. The brokerage currently has an "overweight" rating on the transportation company's stock. Morgan Stanley's price target would suggest a potential upside of 86.47% from the company's current price.

Several other brokerages also recently issued reports on ALK. TD Cowen reduced their price target on shares of Alaska Air Group from $63.00 to $54.00 and set a "buy" rating on the stock in a report on Monday, March 9th. The Goldman Sachs Group cut their price objective on Alaska Air Group from $68.00 to $61.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Wall Street Zen cut Alaska Air Group from a "sell" rating to a "strong sell" rating in a report on Tuesday, April 14th. Evercore set a $60.00 price target on Alaska Air Group in a research report on Friday. Finally, UBS Group reissued a "buy" rating and issued a $54.00 price target (up from $53.00) on shares of Alaska Air Group in a report on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $64.46.

Alaska Air Group Trading Up 0.9%

Shares of ALK stock opened at $41.83 on Wednesday. The stock has a market cap of $4.74 billion, a P/E ratio of 79.35, a P/E/G ratio of 6.33 and a beta of 1.27. The company has a quick ratio of 0.46, a current ratio of 0.50 and a debt-to-equity ratio of 1.17. Alaska Air Group has a fifty-two week low of $33.03 and a fifty-two week high of $65.88. The business has a fifty day simple moving average of $43.99 and a 200-day simple moving average of $46.51.

Alaska Air Group (NYSE:ALK - Get Free Report) last released its quarterly earnings data on Monday, April 20th. The transportation company reported ($1.68) EPS for the quarter, missing the consensus estimate of ($1.61) by ($0.07). The business had revenue of $3.30 billion during the quarter, compared to analysts' expectations of $3.31 billion. Alaska Air Group had a return on equity of 4.86% and a net margin of 0.51%.Alaska Air Group's quarterly revenue was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.77) earnings per share. Alaska Air Group has set its Q2 2026 guidance at -1.000--1.000 EPS. On average, analysts forecast that Alaska Air Group will post 0.34 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Alaska Air Group news, EVP Andrew R. Harrison sold 5,500 shares of the company's stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $56.63, for a total transaction of $311,465.00. Following the completion of the sale, the executive vice president directly owned 30,828 shares in the company, valued at $1,745,789.64. This represents a 15.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Kyle B. Levine sold 2,945 shares of the business's stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $60.02, for a total value of $176,758.90. Following the sale, the executive vice president owned 20,977 shares of the company's stock, valued at $1,259,039.54. The trade was a 12.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 56,945 shares of company stock worth $3,204,569 over the last three months. 1.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Allianz Asset Management GmbH boosted its position in Alaska Air Group by 40.1% in the 3rd quarter. Allianz Asset Management GmbH now owns 173,610 shares of the transportation company's stock valued at $8,642,000 after buying an additional 49,663 shares during the last quarter. Generate Investment Management Ltd purchased a new stake in shares of Alaska Air Group during the fourth quarter worth about $40,240,000. Lighthouse Investment Partners LLC acquired a new position in shares of Alaska Air Group in the third quarter worth about $4,194,000. CM Management LLC acquired a new position in shares of Alaska Air Group in the third quarter worth about $1,244,000. Finally, JPMorgan Chase & Co. boosted its holdings in Alaska Air Group by 29.1% in the third quarter. JPMorgan Chase & Co. now owns 206,172 shares of the transportation company's stock valued at $10,263,000 after purchasing an additional 46,445 shares during the last quarter. Institutional investors and hedge funds own 81.90% of the company's stock.

Key Headlines Impacting Alaska Air Group

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Expanded Bank of America card partnership should boost loyalty revenue and marketing reach, supporting Atmos Rewards monetization and recurring premium revenue. Alaska Air Group and Bank of America Expand Long-Standing Credit Card Partnership
• Positive Sentiment: Wall Street coverage remains constructive — multiple outlets note a unanimous buy/strong-buy analyst consensus and above‑median price targets (median target ~$61), which can support longer‑term investor confidence. Every Wall Street Analyst Says Buy Alaska Air
• Positive Sentiment: Management highlights continued underlying demand and premium revenue growth (premium revenue +8% YoY), suggesting revenue resilience into peak travel season. Alaska Air points to strong underlying demand despite fuel and weather challenges
• Neutral Sentiment: Top‑line was up ~5% YoY to $3.3B, roughly in line with sales expectations — revenue growth is present but not large enough on its own to offset margin pressure from costs. Here's What Key Metrics Tell Us About Alaska Air (ALK) Q1 Earnings
• Negative Sentiment: Earnings missed modestly (Q1 EPS -$1.68 vs. est. -$1.61) and the company suspended full‑year guidance, citing volatile jet fuel — a clear negative for near‑term valuation and analyst confidence. Alaska Air Group Suspends Guidance, Citing Fuel Cost Uncertainty (WSJ)
• Negative Sentiment: CEO Ben Minicucci said the Iran‑linked jet fuel surge will hit margins by roughly $600M in Q2 and the company withdrew its full‑year profit forecast — direct pressure on quarterly earnings and the new Q2 EPS guidance of -1.00 (vs. consensus -0.06). Alaska Air CEO on jet fuel prices: $600M impact in Q2 (CNBC)
• Negative Sentiment: Market reaction: shares moved lower after the print as investors focused on the EPS miss, elevated costs, suspended guidance and heavier fuel exposure; margin outlook now dominates short‑term risk. Alaska Air Group (ALK) Stock Falls on Q1 2026 Earnings

Alaska Air Group Company Profile

Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.

The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.

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