NEW YORK, Feb 11, 2026, 07:45 (EST)
- Deutsche Bank cut Frontier Group (ULCC) to hold from buy and kept its $6 target
- The downgrade lands just before Frontier’s Feb. 11 earnings report
- Shares fell 6.3% on Tuesday as analysts flagged risks around faster capacity growth
Deutsche Bank downgraded Frontier Group Holdings to “hold” from “buy” on Tuesday and kept its $6 12-month price target, a Wall Street estimate of where the stock could trade. Analyst Michael Linenberg said the shares, up 35% this year, now sit near fair value after beating the S&P 500’s 1.7% gain. (TipRanks)
The call hits one day before Frontier, parent of Frontier Airlines, is due to report earnings on Feb. 11. Deutsche Bank said the stock had been trading above its target after the rally. (Investing.com South Africa)
Frontier shares closed at $5.96 on Feb. 10, down 6.29% on the day, according to Investing.com data. (Investing)
A MarketWatch column carried on Futu said Frontier stock had gained nearly 55% in recent months, beating a 24% rise in the U.S. Global JETS airline ETF, even as it remains down about 40% over the past year. Deutsche Bank warned that Frontier’s plan to lift second-quarter capacity — the number of seats it flies — about 14% year on year “raises the risk profile of the company,” especially if demand cools or fuel turns volatile. (MarketWatch)
Frontier is an ultra-low-cost carrier, a bare-bones model built on cheap base fares and add-on fees for things like bags and seat choice. It works best when planes stay full and costs stay tight.
Spirit Airlines, one of Frontier’s closest low-fare rivals, has been shrinking while it restructures. Spirit last week asked a court to let it transfer two Chicago O’Hare gates to United Airlines for $30.2 million, after exiting 14 airports and rejecting leases for more than 80 aircraft. (Reuters)
Spirit and Frontier have also been in merger discussions, Bloomberg reported in December, though talks were ongoing and could still collapse without a deal. Both airlines declined to comment at the time. (Reuters)
Frontier said on Feb. 9 it appointed former Toyota Motors North America chief accounting officer Anthony Salcido to its board. Chairman William A. Franke said Salcido’s “deep experience in corporate financial leadership” would help the company. (Stock Titan)
But the rebound has come alongside losses and worries about cash burn, and the biggest downside scenario is simple: Frontier adds seats into a softer travel market and has to cut fares to fill them. Simply Wall St said bearish notes have highlighted ongoing losses and liquidity concerns even as the shares have surged over the past 90 days. (Simply Wall St)
