Is Alaska Air Group (ALK) a Buy Post Earnings?

Alaska Air Group, Inc. (NYSE:ALK) is one of the best transportation stocks to buy according to Wall Street analysts. Alaska Air Group, Inc. (NYSE:ALK) released its fiscal Q4 and full year 2025 results on January 22, with reported EPS of $0.18 and adjusted earnings per share of $0.43, ahead of expectations and previous guidance range. The company generated $1.2 billion in operating cash flow for the full year. In addition, Alaska Air Group, Inc. (NYSE:ALK) achieved a single operating certificate for Hawaiian Airlines and Alaska Airlines.

Following the earnings release, the company received several rating updates from analysts. On January 30, TD Cowen cut the price target on Alaska Air Group, Inc. (NYSE:ALK) to $63 from $64, reaffirming a Buy rating on the shares and telling investors that it updated its estimates to take into account guidance for Q1/FY26.

In addition to TD Cowen, Morgan Stanley also maintained a bullish stance on Alaska Air Group, Inc. (NYSE:ALK) on January 23, maintaining a Buy rating and stating that the company finished the year with earnings meaningfully above expectations in fiscal Q4. These positive trends were supported by a more favorable fuel expense, reduced tax rate, and better cost control.

The firm also stated that synergies are tracking ahead of plan, with early 2026 booking trends showing particular strength. Morgan Stanley sees a credible path to earnings of $6.50 per share without the need for additional macro or industry tailwinds, adding that further upside is possible through continual improvement in the U.S. domestic demand.

Alaska Air Group, Inc. (NYSE:ALK) provides air transportation services and operates through the following segments: Alaska Airlines, Hawaiian Airlines, and Regional.

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Disclosure: None. This article is originally published at Insider Monkey.