BUZZ-Raymond James cuts Alaska Air's PT, cites fuel costs

Reuters03-31
BUZZ-Raymond James cuts Alaska Air's PT, cites fuel costs

** Raymond James cuts price target on Alaska Air ALK.N to $50 from $70; reiterates "outperform" rating

** New PT still represents a 46.2% upside to stock's last close

** Brokerage says ALK has been significantly hurt by volatility in refining margins, especially in Singapore, which supplies ~20% of its fuel and is usually its cheapest source

** Raymond James notes ALK cited demand weakness in Mexico tied to unrest in Puerto Vallarta, along with severe rainstorms and historic flooding in Hawaii

** Adds that Puerto Vallarta and Hawaii make up about 30% of Alaska’s capacity, and both March and April are affected

** Median PT of 18 brokerages covering the stock is $67 - data compiled by LSEG

** As of last close, ALK down 32% YTD

(Reporting by Megavarshini G. Somasundaram in Bengaluru)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))

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