Alaska Air upgraded to Buy from Hold at Stifel

|About: Alaska Air Group, Inc. (ALK)|By:, SA News Editor

Alaska Air (NYSE:ALK) +1.2% premarket after Stifel upgrades shares to Buy from Hold with a $145 price target, raised from $105, based on the firm's sum-of-the-parts analysis which values the company's loyalty program at $83/share (22x 2018 EPS of the loyalty program) and the core airline at $62/share (11x 2018 EPS).

Stifel believes this is the proper way to value ALK - and most airlines - given the very different characteristics of the core airline vs. the loyalty program, specifically the business of selling miles to credit card partners.