BUZZ-TD Cowen cuts Alaska Air PT amid cost pressure, IT outage impact
TD Cowen has reduced its price target for Alaska Airfrom $68 to $61, reflecting a 24.5% premium from the stock's last close. The brokerage maintains a 'buy' rating, citing increased costs in Q3 due to adverse weather and an IT outage impacting earnings. They also lowered the 2025 EPS forecast to $2.37 from $3.37. Susquehanna has similarly cut its price target to $58. Despite a 24.4% year-to-date decline, all sixteen brokerages rate the stock as 'buy' or higher, with a median price target of $65.
TD Cowen lowers PT on Alaska Air (ALK.N) to $61 from $68, the new PT shows a premium of 24.5% from the stock’s last close
Reiterates rating at “buy”
Brokerage says co grappled with higher costs in Q3 due to bad weather in July, also expects the IT outage during the quarter to be a drag of approx 10 cents on adj EPS
Notes that West Coast fuel pricing has remained stubbornly high, and prices did not decline as expected in August and September, even after a refinery returned from a July outage
Brokerage lowers 2025 EPS forecast to $2.37 from $3.37
Susquehanna also slashed PT to $58 from $60
All of the sixteen brokerages rate the stock “buy” or higher; their median PT is $65 - data compiled by LSEG
As of last close, stock had fallen 24.4% YTD
