Alaska Air's 2027 EPS Target May Exceed Expectations Amid Growth Drivers: Analyst Highlights Single Loyalty Program

Core Insights - Alaska Air Group, Inc. (ALK) shares are experiencing an upward trend in trading [1] - Goldman Sachs analyst Catherine O'Brien suggests potential upside to the company's 2027 EPS target due to several favorable factors [2] - The company is planning to transition to a single loyalty program by the second half of 2025 [3] Financial Projections - O'Brien's price forecast for ALK shares is set at $70, based on a normalized EBITDAR valuation methodology, applying a 3.1x EV/EBITDAR multiple to a normalized EBITDAR estimate of $3.7 billion [4] - The analyst estimates FY24 revenues at $11.711 billion and projects FY25 revenues to reach $14.734 billion [5] Strategic Developments - A new agreement is anticipated to follow the transition to a single loyalty program, likely before current contracts expire [4] - The recent $1 billion share repurchase authorization is expected to contribute positively to the company's financial outlook [2] Market Performance - ALK shares are currently trading at $64.06, reflecting a slight decrease of 0.05% [6]