Cautious Outlook on Frontier Group Holdings Amid Revenue Shortfalls and Cost Pressures
Analyst Thomas Fitzgerald of TD Cowen has maintained a Hold rating on Frontier Group Holdings, with a price target of $3.00. This cautious outlook is due to revenue shortfalls in Q3, competitive pricing pressures, and concerns over core earnings and cost pressures in 2026. Despite management's optimism about future revenue growth and plans to increase capacity, Fitzgerald remains skeptical about profitability. Another report upgraded the stock to a Hold with a $3.50 price target.
Analyst Thomas Fitzgerald CFA of TD Cowen maintained a Hold rating on Frontier Group Holdings, retaining the price target of $3.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Thomas Fitzgerald CFA has given his Hold rating due to a combination of factors impacting Frontier Group Holdings. The company’s revenue fell short of previous expectations in the third quarter, largely due to competitive pricing pressures from rivals like Southwest and Spirit. While management remains hopeful about revenue growth in 2026, particularly with the introduction of first-class seating, Fitzgerald remains skeptical about the potential impact on the profit and loss statement.
Moreover, there are concerns regarding core earnings, excluding gains from sale-leaseback transactions, and anticipated cost pressures in areas such as labor, maintenance, and rent in 2026. The company is still negotiating a post-COVID labor agreement with its pilots, which could further influence costs. Despite management’s plans to increase capacity and take delivery of new aircraft, Fitzgerald maintains a cautious outlook, reflected in the Hold rating and a price target of $3.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Hold with a $3.50 price target.
