BofA Turns Bullish On Frontier Group Amid Airline Ratings Shake-Up

BofA analyst Andrew Didora upgraded Frontier Group Holdings Inc ULCC to Buy from Neutral and lowered the price target to $18 (an upside of 28%), from $19, as he contends that poor investor sentiment in the airlines could set the stage for a trade higher in the first half of this year.
"Times of poor sentiment are usually good times to buy airline stocks," the analyst argues.
Didora upgrade of Frontier is paired with a downgrade of Allegiant Travel Co ALGT to Neutral from Buy with a price target of $200 (an upside of 13%), down from $225.
The analyst sees heightened cost risk given Allegiant's recent Boeing Co BA 737 MAX order and prefers exposure to mainline carriers.
Price Action: ULCC shares are trading higher by 2.71% at $14.00, and ALGT is down by 0.53% at $176.66 on the last check Friday.