Morgan Stanley reiterates Buy rating on Alaska Air, sees potential upside of over 75%

From Yahoo Finance: 2025-06-23 16:05:00

Alaska Air Group Inc. is considered one of the 10 most undervalued industrial stocks to buy by analysts. Morgan Stanley reiterated a Buy rating on Alaska Air, with a price target of $83, indicating potential upside of over 75%. The airline’s strategic move into Europe, specifically the new Seattle-to-Rome route, signals its intent to accelerate international growth and position Seattle as a major international hub.

The decision to launch the Rome route was driven by customer demand from Mileage Plan members, highlighting Alaska’s customer-centric approach. This move is seen as a key milestone in the airline’s international expansion plans, with new destinations to be added each year. Morgan Stanley views Alaska Air Group Inc. as their preferred pick in the sector, given its potential upside and pending integration with Hawaiian Airlines.

The analyst believes the transatlantic market offers better fundamentals than transpacific routes, making the European expansion a timely move for the airline. Alaska Air Group Inc. is the fifth-largest airline company in the United States, operating Alaska Airlines, Hawaiian Airlines, and Horizon Air. While Alaska Air presents investment potential, other AI stocks may offer greater upside and less downside risk in the current market environment.



Read more at Yahoo Finance: Morgan Stanley Keeps Buy Call, Trims Price Target to $83