Credit Suisse Downgrades Alaska Air (ALK) to Neutral

Credit Suisse downgraded Alaska Air (NYSE: ALK) from Outperform to Neutral with a price target of $90.00 (from $95.00), saying capacity concenrs keep pressure on PRASM.

Analyst Julie Yates commented, "At 11x our 2016E, ALK is the 2nd most expensive stock in our coverage on consensus behind ALGT. Since Q3 earnings, 2016 consensus has risen 4% largely driven by a positive investor day. While we still like ALK’s attractive cost structure, healthy shareholder returns, pristine balance sheet, and capital disciplined management team, we see more upside elsewhere in our coverage following the stock’s +26% appreciation since our upgrade last June. Our 2016E of $7.17 is in-line with consensus and we see limited scope for upside to earnings or the multiple near-term."

For an analyst ratings summary and ratings history on Alaska Air click here. For more ratings news on Alaska Air click here.

Shares of Alaska Air closed at $78.20 yesterday.

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