UBS assumes coverage on Frontier Group with 'neutral' rating

UBS assumes coverage on U.S. budget airline Frontier Group Holdings ULCC.O with "neutral" rating; raises PT to $4 from $3.50

ULCC can benefit from its initiatives around premium seating, loyalty programs and cost-cutting plans, brokerage says

Company faces competitive response from network carriers such as United Airlines UAL.O, which offer robust economic offerings, UBS says

"The macro backdrop remains uneven and ULCC's customers tend to be more price-sensitive than others" - UBS

One among 12 brokerages rates the stock "buy" or higher, 10 "hold" and one "sell"; median PT is $4 - data compiled by LSEG

As of last close, stock down ~44.5% YTD