Citi analyst Stephen Trent has adjusted the price target for Frontier Group Holdings (ULCC, Financial), bringing it down from $7.25 to $4, while maintaining a Neutral rating on the airline's shares. This revision reflects challenges posed by broader economic issues, such as tariffs and uncertainties surrounding government efficiency, which could impact consumer spending and corporate strategies.
The firm expresses concern over the vulnerability of discount airlines like Frontier and JetBlue in the face of these economic pressures. Citi suggests that such carriers could experience greater challenges, particularly if a recession occurs and tariffs disproportionately affect individuals from lower socio-economic backgrounds.
This cautious outlook underscores the potential headwinds facing the airline industry, especially those companies operating on tighter margins. Investors and stakeholders in Frontier Group (ULCC, Financial) may need to brace for continued volatility as these economic factors unfold.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Frontier Group Holdings Inc (ULCC, Financial) is $5.69 with a high estimate of $10.00 and a low estimate of $3.00. The average target implies an upside of 59.96% from the current price of $3.56. More detailed estimate data can be found on the Frontier Group Holdings Inc (ULCC) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Frontier Group Holdings Inc's (ULCC, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Frontier Group Holdings Inc (ULCC, Financial) in one year is $10.07, suggesting a upside of 182.87% from the current price of $3.56. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Frontier Group Holdings Inc (ULCC) Summary page.
