The Analyst Landscape: 4 Takes On Frontier Group Holdings

In the last three months, 4 analysts have published ratings on Frontier Group Holdings ULCC, offering a diverse range of perspectives from bullish to bearish.

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

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $7.25, with a high estimate of $8.00 and a low estimate of $6.00. A 3.33% drop is evident in the current average compared to the previous average price target of $7.50.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Frontier Group Holdings among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Frontier Group Holdings. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Frontier Group Holdings compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Frontier Group Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Frontier Group Holdings's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Get to Know Frontier Group Holdings Better

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.

Unraveling the Financial Story of Frontier Group Holdings

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.

Decline in Revenue: Over the 3 months period, Frontier Group Holdings faced challenges, resulting in a decline of approximately -1.66% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Frontier Group Holdings's net margin is impressive, surpassing industry averages. With a net margin of -4.15%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Frontier Group Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -7.06%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Frontier Group Holdings's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.75%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 6.82, caution is advised due to increased financial risk.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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