Alaska Air Group Rated Buy Amid Positive Analyst Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 26 2025
0mins
Should l Buy ALK?
Alaska Air Group's stock fell 5.01% and crossed below its 5-day SMA, reflecting broader market weakness as the Nasdaq-100 and S&P 500 declined.
Despite the price drop, Alaska Air received positive analyst ratings, with UBS maintaining a Buy rating and a $77 price target, indicating strong market confidence. Additionally, Susquehanna raised its price target from $52 to $70, highlighting optimism for the airline sector's recovery and Alaska Air's strategic fleet expansion plans.
This positive outlook from analysts suggests that Alaska Air is well-positioned for growth, even as it faces short-term market challenges. The company's commitment to expanding its fleet and diversifying revenue sources could enhance its competitive position in the recovering airline industry.
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Analyst Views on ALK
Wall Street analysts forecast ALK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALK is 73.00 USD with a low forecast of 64.00 USD and a high forecast of 94.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 55.260
Low
64.00
Averages
73.00
High
94.00
Current: 55.260
Low
64.00
Averages
73.00
High
94.00
About ALK
Alaska Air Group, Inc. is engaged in operating airlines. The Company operates through its subsidiaries Alaska Airlines, Inc., Hawaiian Holdings, Inc., Horizon Air Industries, Inc., and McGee Air Services. The Company's segments include Alaska Airlines, Hawaiian Airlines, and Regional. The Alaska Airlines segment includes scheduled air transportation on Alaska's Boeing jet aircraft for passengers and cargo. The Hawaiian Airlines segment includes scheduled air transportation on Hawaiian's Boeing and Airbus jet aircraft for passengers and cargo. The Regional segment includes Horizon's and other third-party carriers’ scheduled air transportation on E175 jet aircraft for passengers under capacity purchase agreements (CPAs). The Company serves more than 140 destinations throughout North America, Central America, Asia and across the Pacific. The Company provides freight and mail services (cargo) using both freighter aircraft and the bellies of its passenger aircraft.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Price Target Increase: Prior to this, Susquehanna raised Alaska Air's price target from $52 to $70 while maintaining a Buy rating, highlighting an optimistic fundamental outlook for the airline industry into fiscal year 2026, suggesting significant potential for the company amid industry recovery.
- Long-Term Expansion Plans: Alaska Air advanced its fleet expansion strategy by ordering 53 additional 737-10 aircraft for delivery between 2032 and 2035, demonstrating its commitment to capacity and fleet growth well into the next decade.
- Diverse Revenue Sources: Analysts noted that Alaska Air and select carriers are well-positioned to benefit from diverse revenue streams and strong brand loyalty, indicating a favorable market position as the airline industry recovers.
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- Stable Revenue Growth: The company achieved $3.63 billion in revenue for Q4, a 3% increase year-over-year, despite falling short of consensus estimates, with a 0.6% rise in revenue per available seat mile (RASM) reflecting resilience during the government shutdown.
- Strategic Investment Plan: Alaska Air's three-year 'Alaska Accelerate' initiative aims to generate $1 billion in incremental profit by expanding international routes and upgrading premium offerings, targeting at least 12 widebody international destinations by 2030.
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