Frontier Group (NASDAQ:ULCC) Shares Gap Up Following Analyst Upgrade

Key Points

• Frontier Group shares surged over 15% after an upgrade from Deutsche Bank, raising its rating from "hold" to "buy" with a new price target of $8.00.
• Despite the upgrade, other brokerages have lowered their price targets, with UBS setting it at $3.50 and Morgan Stanley at $9.00, indicating mixed sentiments in the market.
• The company reported a quarterly loss of ($0.31) EPS, missing analysts' expectations, and showed a 4.5% drop in revenue year-over-year.

Shares of Frontier Group Holdings, Inc. (NASDAQ:ULCC - Get Free Report) gapped up before the market opened on Tuesday after Deutsche Bank Aktiengesellschaft upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $4.90, but opened at $5.63. Deutsche Bank Aktiengesellschaft now has a $8.00 price target on the stock, up from their previous price target of $4.00. Frontier Group shares last traded at $5.79, with a volume of 2,945,789 shares.

A number of other research analysts have also recently weighed in on ULCC. Morgan Stanley reduced their target price on Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a report on Monday, May 19th. Bank of America dropped their target price on Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a report on Tuesday, July 1st. Finally, UBS Group reduced their price target on Frontier Group from $4.00 to $3.50 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. Two investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Frontier Group currently has a consensus rating of "Hold" and a consensus price target of $5.61.

Institutional Investors Weigh In On Frontier Group

A number of institutional investors have recently made changes to their positions in ULCC. Byrne Asset Management LLC bought a new stake in Frontier Group during the first quarter valued at $35,000. Ameritas Investment Partners Inc. raised its holdings in shares of Frontier Group by 130.0% during the second quarter. Ameritas Investment Partners Inc. now owns 8,643 shares of the company's stock valued at $31,000 after buying an additional 4,885 shares during the last quarter. CWM LLC boosted its position in Frontier Group by 165.0% during the 2nd quarter. CWM LLC now owns 10,042 shares of the company's stock worth $36,000 after acquiring an additional 6,253 shares during the period. Baron Wealth Management LLC bought a new stake in shares of Frontier Group during the second quarter valued at about $37,000. Finally, MQS Management LLC acquired a new stake in shares of Frontier Group in the 2nd quarter worth approximately $37,000.

Frontier Group Price Performance

The business has a 50-day simple moving average of $4.28 and a two-hundred day simple moving average of $4.46. The company has a quick ratio of 0.36, a current ratio of 0.41 and a debt-to-equity ratio of 0.53. The stock has a market capitalization of $1.18 billion, a price-to-earnings ratio of -32.38 and a beta of 2.63.

Frontier Group (NASDAQ:ULCC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported ($0.31) EPS for the quarter, missing analysts' consensus estimates of ($0.28) by ($0.03). Frontier Group had a negative return on equity of 12.56% and a negative net margin of 0.87%.The firm had revenue of $929.00 million during the quarter, compared to the consensus estimate of $951.92 million. During the same period in the prior year, the firm posted $0.14 EPS. The firm's quarterly revenue was down 4.5% on a year-over-year basis. Frontier Group has set its Q3 2025 guidance at -0.420--0.260 EPS. As a group, research analysts predict that Frontier Group Holdings, Inc. will post 0.91 earnings per share for the current fiscal year.

About Frontier Group

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.