Citigroup has initiated coverage on Alaska Air Group Inc (ALK) with a Buy rating, marking the firm's first assessment of the airline's investment potential. This rating reflects Citigroup's analysis of Alaska Air's business fundamentals, industry dynamics, and growth prospects.
Alaska Air Group, headquartered in Seattle, Washington, operates through its subsidiaries, including Alaska Airlines, Hawaiian Holdings, Horizon Air, and McGee Air Services. The company serves over 140 destinations across North America, Central America, and Asia, employing 30,207 full-time staff. As of December 3, 2025, the stock is priced at $49.28, with a market capitalization of $4.7 billion and a trailing P/E ratio of 31.14.
Upcoming earnings reports are anticipated, with estimates suggesting an EPS of $2.60 and revenue of $4.0 billion for July 21, 2026. Recent earnings performance has shown mixed results, with Q3 2025 EPS reported at $1.05, falling short of the $1.14 estimate.
Analyst ratings, such as Citigroup's, provide valuable insights based on thorough research. However, they are ultimately reflections of assumptions that may not always materialize. Investors should consider these ratings alongside other factors, including company fundamentals and industry trends, to form a well-rounded view of the investment landscape. Analyst opinions can evolve as new information emerges, and differing viewpoints may exist among analysts regarding the same company.