Frontier Group Holdings, Inc. (NASDAQ:ULCC) Maintains Neutral Rating Amid Market Challenges

• UBS maintains a Neutral rating for NASDAQ:ULCC, with a raised price target from $3.50 to $5.
• Frontier Airlines CEO Barry Biffle defends the low-cost model against criticism from United Airlines CEO Scott Kirby.
• The stock price of ULCC has seen significant volatility, with a current increase to $4.90, indicating potential for growth despite market challenges.

Frontier Group Holdings, Inc. (NASDAQ:ULCC), the parent company of Frontier Airlines, is a prominent player in the U.S. budget airline sector. Known for its low-cost model, Frontier competes with other discount carriers like Spirit Airlines. On September 26, 2025, UBS maintained a Neutral rating for ULCC, suggesting investors hold their positions. At that time, the stock was priced at $4.77.

UBS also adjusted its price target for Frontier Group, raising it from $3.50 to $5, as highlighted by TheFly. This adjustment reflects a more optimistic outlook for the company's stock performance. Currently, ULCC's stock price is $4.90, marking a 2.62% increase with a $0.13 change. The stock has fluctuated between $4.81 and $5.08 today.

Frontier Airlines CEO Barry Biffle recently addressed comments from United Airlines CEO Scott Kirby, who criticized the discount airline model. Biffle countered Kirby's claims, attributing challenges to an oversupply of flights in the U.S. market. Despite Kirby's skepticism, Biffle remains confident in Frontier's business model and market position.

Kirby had previously suggested that Spirit Airlines, a major U.S. discount carrier, might face financial difficulties. Spirit has indeed struggled, entering its second bankruptcy in less than a year. However, Biffle is undeterred by Kirby's warnings, even as Kirby cautioned that Frontier could face similar challenges if it aims to dominate the discount airline market.

Frontier's market capitalization is approximately $1.12 billion, with a trading volume of 807,700 shares on the NASDAQ exchange. Over the past year, ULCC's stock has seen a high of $10.26 and a low of $2.89, indicating significant volatility. Despite these fluctuations, UBS's revised price target suggests potential for growth.