Frontier Group (ULCC) Revises Q1 Guidance Amid Falling Demand

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Apr 12, 2025

Key Takeaways:

  • Frontier Group Holdings, Inc. (ULCC, Financial) revises Q1 forecast due to demand decline.
  • Analysts project an average price target of $5.69, with a significant upside potential.
  • GuruFocus estimates the GF Value could reach $10.04 in one year.

Frontier Group Holdings, Inc. (ULCC) has adjusted its first-quarter forecast following a decrease in demand throughout March, leading to a drop in fares and increased promotions within the airline sector. The company now predicts an adjusted pre-tax loss margin of around 5%, with an expected net loss per share ranging from $0.20 to $0.24. Despite holding a substantial liquidity position of $885 million, Frontier has opted to suspend its full-year 2025 guidance amid persisting uncertainties.

Wall Street Analysts' Projections

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According to price targets set by nine industry analysts, the average target for Frontier Group Holdings Inc (ULCC, Financial) stands at $5.69. With a projected high of $10.00 and a low of $3.00, the average target suggests a potential upside of 68.97% from the current share price of $3.37. For further details, investors can explore the Frontier Group Holdings Inc (ULCC) Forecast page.

Reflecting on consensus recommendations from twelve brokerage firms, Frontier Group Holdings Inc (ULCC, Financial) currently holds an average brokerage recommendation of 3.0, indicative of a "Hold" status. This rating operates on a scale from 1 to 5, where 1 symbolizes a Strong Buy and 5 indicates a Sell.

GuruFocus Valuation Insights

From a valuation perspective, GuruFocus estimates the GF Value for Frontier Group Holdings Inc (ULCC, Financial) to reach $10.04 within the next year, equating to a remarkable potential upside of 197.92% from the current stock price of $3.37. The GF Value is derived from the historical multiples at which the stock has traded, as well as past business growth and projected future performance. For comprehensive valuation metrics, visit the Frontier Group Holdings Inc (ULCC) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.