Stock Price & Analysis

Buy ALK stock as positive analyst sentiment and strong management outweigh current airline sector challenges.

Alaska Air Group (ALK) is expected to reach a price target of $82.71 by 2025, supported by strong analyst upgrades and positive financial performance. The stock is projected to benefit from improved travel demand and operational efficiency, with a potential upside of 16.49% from current levels. Analysts highlight the company's successful integration of Hawaiian Airlines and its strategic growth initiatives as key drivers for future success.

The S1 support level for ALK Stock is $52.76 ,The R1 resistant level for ALK Stock is $70.14.

As of the end of day on 2025-03-17, the price of ALK Stock was $53.9.

The target price for ALK Stock according to analyst rating is 87.58, with the highest price target at 110.00 and the lowest at 72.00. Analysts have a Strong Buy rating on ALK Stock overall.

The market cap of ALK is $6.6B.

Analysis and Insights

To determine if Alaska Air Group (ALK) is overvalued, we analyze its valuation metrics, recent market trends, and analyst sentiment.

Valuation Metrics:

ALK's current valuation metrics are as follows:

• PE Ratio: 17.98 (Q3 2024) and 21.04 (Q4 2024)
• EV/EBITDA: 5.95 (Q3 2024) and 7.13 (Q4 2024)
• PS Ratio: 1.27 (Q3 2024) and 1.82 (Q4 2024)
• PB Ratio: 0.54 (Q3 2024) and 0.71 (Q4 2024)
• Dividend Yield: 0% for both quarters

These metrics indicate moderate valuation levels, with the PS ratio showing an upward trend, which could signal potential overvaluation relative to revenue.

Market Trends:

The airline sector, including ALK, has faced recent declines due to recession fears and operational challenges such as air traffic controller shortages and safety concerns following a recent plane crash. These factors have negatively impacted investor sentiment and stock performance.

Analyst Sentiment:

Analysts have maintained a "Strong Buy" or "Buy" rating on ALK, with price targets ranging from $70 to $90. This suggests confidence in ALK's long-term growth potential, driven by factors like network revamp opportunities and resilient demand.

Conclusion:

While ALK's valuation metrics and positive analyst sentiment indicate potential, the current market conditions and operational challenges suggest that ALK might be slightly overvalued. Investors should consider these factors and monitor the stock's performance closely.

{RATING:symbol=ALK.N, type=0}

Alaska Air Group, Inc. is engaged in operating airlines. The Company operates two airlines, Alaska, and Horizon. It also includes McGee Air Services, an aviation services provider. It operates through three segments: Mainline, Regional and Horizon. The Mainline segment includes scheduled air transportation on Alaska's Boeing 737 (B737) aircraft for passengers and cargo throughout the United States, and in parts of Mexico, Costa Rica, Belize, the Bahamas, and Guatemala. The Regional segment includes Horizon's and other third-party carriers scheduled air transportation on Embraer E175 (E175) aircraft for passengers across a shorter distance network within the United States, Canada, and Mexico under capacity purchase agreements (CPA). The Horizon segment includes the capacity sold to Alaska under a CPA. With its regional partners, it flies to more than 120 destinations throughout North America. It provides its guests with global access to more than 900 destinations in 170 territories.

Price Prediction for ALK Stock in 2030

Based on current trends and analyst expectations, Alaska Air Group (ALK) stock is projected to reach $85 to $90 by 2030. This forecast aligns with the company's strategic expansion, including international routes and a premium credit card launch, supported by strong financial performance and analyst upgrades.

ALK has a total of 23178 employees.