Update shared on03 Sep 2025
Fair value Increased 14%Analysts have raised Frontier Group Holdings’ price target from $4.72 to $5.39, driven by expectations that the company will benefit most from Spirit’s bankruptcy due to significant network overlap and proactive route expansion.
Analyst Commentary
- Expectations that Frontier will be the primary beneficiary of Spirit's bankruptcy, due to extensive network overlap.
- 35% of Frontier's network currently overlaps with Spirit for the September quarter, increasing the company's competitive positioning.
- Anticipation of rising overlap to 40% by the December quarter, reflecting Frontier's ongoing strategic expansion.
- Frontier's recent announcement to add 20 new routes later in the year is expected to further boost market share.
- Bullish analysts cite the company’s proactive route expansion and its enhanced network fit as key drivers for the price target increase.
What's in the News
- Spirit Airlines Chairman Robert Milton met with Frontier Group Holdings' Chairman to discuss Spirit's post-bankruptcy rebuilding efforts; no acquisition talks occurred. (Bloomberg)
- Frontier Group Holdings was added to the Russell Small Cap Comp Value Index. (Russell Indexes)
- The company was included in the Russell 3000E Value Index. (Russell Indexes)
- Frontier joined the Russell 2500 Value and Russell 2000 Value Indexes. (Russell Indexes)
- Frontier Group Holdings was also added to the Russell 3000 Value Benchmark. (Russell Indexes)
Valuation Changes
Summary of Valuation Changes for Frontier Group Holdings
- The Consensus Analyst Price Target has significantly risen from $4.72 to $5.39.
- The Future P/E for Frontier Group Holdings has significantly risen from 6.22x to 7.10x.
- The Net Profit Margin for Frontier Group Holdings remained effectively unchanged, at 5.16%.
Disclaimer
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