Frontier Group Holdings (ULCC) Price Target Hiked at UBS amid Neutral Stance

Frontier Group Holdings, Inc. (NASDAQ:ULCC) is one of the best airline stocks to buy according to hedge funds. On July 7, UBS reiterated a ‘Neutral’ rating on the stock but increased its price target to $4 from $3.50.

Frontier Group Holdings (ULCC) Price Target Hiked at UBS amid Neutral Stance

An airline passenger going through the security process at an airport managed by the company.

The price target hike comes as the research firm expects the company to deliver second-quarter results in line with guidance. As of May 20, Frontier Group was tracking according to guidance. UBS expects revenue per available seat mile to grow by 1.2%, compared to a low single-digit percentage growth scheduled according to the guidance.

UBS analysis also suggests that the company may have felt the full impact of inflation in the second quarter. Deteriorating demand might have triggered a reduced close in capacity, resulting in fewer sale-leaseback gains. Consequently, the cost per available seat increased by 23%, excluding fuel.

Frontier Group Holdings, Inc. (NASDAQ:ULCC) is a holding company with a diverse portfolio of businesses. It is involved in several industries, including airlines, environmental remediation, industrial demolition, asset recovery, and commercial development. It also provides low-fare passenger airline services to leisure travelers in the United States and Latin America.

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Disclosure: None. This article is originally published at Insider Monkey.