Citi downgraded Alaska Air to Sell from Buy with a price target of $32, down from $51. The airline is "asymmetrically and unfavorably exposed" to higher fuel prices, the analyst tells investors in a research note. Citi expects consensus estimates to move lower with analysts "uniformly bullish" on the shares. The firm believes Alaska Air will likely need to revisits its greater than $10" earnings per share target for 2027 later this year. The airline's reluctance to cut capacity creates a risky second half of 2026 setup for the stock, contends Citi.
