Citi Names Alaska Air Group Top Buy Among North American Airlines (ALK)

In a study of the North American Airlines 2011 Outlook published today by Citi, the company recommends Alaska Air Group ALK as as their top stock option in the North American airline industry. In the report, Citi states, "While the rising tide of corporate travel budgets should lift airline stocks once again, we maintain a selective bias and would position in airlines with material FCF-driven deleveraging to support improved valuations in a flatter earnings environment and create cushion in the event of unplanned economic/fuel shocks. Buy-rated ALK remains our top pick given its leading fundamentals, more stable earnings profile, ability to outperform the industry if fuel prices continue upward, and lowest 2011E EV/EBITDAR valuation in group." Citi maintains its Buy rating on Alaska Air Group. Its PT has increased from $75 to $77. Alaska Air Group shares are currently trading at $63.90, up 1.25% since yesterday's market close.