UBS Maintains a 'Buy' on Allegiant Travel Company (ALGT); Feeling Pretty Good into 2012

UBS maintains a 'Buy' on Allegiant Travel Company (NASDAQ: ALGT) price target of $63.00.

UBS analyst says, "Optimistic About Outlook: Allegiant's investor day was upbeat as mgmt looks into 2012 with perhaps more optimism than they did into 2011. 2011 was a transition year in many respects as the company invested heavily in technology, fleet, and personnel to support its growth. Although these investments will continue in 2012, the company expects to begin reaping the rewards of the extra seats, a new website/IT platform, 757s to Hawaii, and more experienced mgmt in most departments."

"Is the Online Travel Agency (OTA) potential large?: We believe it is worthwhile certainly but not large in the near term. Allegiant is not a traditional OTA and can't buy demand (from Google (Nasdaq: GOOG) / others). The immediate goal, in our view, is to increase conversion (purchases per website visit) and attachment rate (additional services purchased) from its customer base. This is very high incremental margin but we don't expect a significant jump in EPS results soon."

For an analyst ratings summary and ratings history on Allegiant Travel Company click here. For more ratings news on Allegiant Travel Company click here.

Shares of Allegiant Travel Company closed at $50.58 yesterday.

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