Demystifying Frontier Group Holdings: Insights From 9 Analyst Reviews

9 analysts have shared their evaluations of Frontier Group Holdings ULCC during the recent three months, expressing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $4.87, along with a high estimate of $7.00 and a low estimate of $3.00. A 23.79% drop is evident in the current average compared to the previous average price target of $6.39.

Interpreting Analyst Ratings: A Closer Look

The standing of Frontier Group Holdings among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Frontier Group Holdings. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Frontier Group Holdings compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Frontier Group Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Frontier Group Holdings's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Delving into Frontier Group Holdings's Background

Frontier Group Holdings Inc is an ultra-low-cost carrier whose business is focused on Low Fares Done Right. The company owns a fleet of 120 Airbus single-aisle aircraft, consisting of 13 A320ceos, 82 A320neos, 21 A321ceos and 4 A321neos. The use of these aircraft, their seating configuration, weight-saving tactics, and baggage process have all contributed to the ability to continue to be the fuel-efficient of all the U.S. The Company is managed as a single business unit that provides air transportation for passengers.

Frontier Group Holdings: Financial Performance Dissected

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Frontier Group Holdings displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 0.62%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Frontier Group Holdings's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 3.19%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Frontier Group Holdings's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.18%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.57%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Frontier Group Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 7.87, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.