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Jesup & Lamont Upgrades Allegiant Travel (ALGT) to Buy

May 22, 2009 8:51 AM EDT
ALGT Hot Sheet
Rating Summary:
    4 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 1 | New: 1
Jesup & Lamont upgrades Allegiant Travel (Nasdaq: ALGT) from Hold to Buy.

Jesup analyst says, "They have proven their model . We are concerned about higher fuel prices because they do not hedge, but they were profitable last year when oil was $147 and jet fuel was over $4.00 per gallon. We are also concerned about the 'chipping away' we are seeing (AirTran in the Atlantic City to Orlando market or Alaska Airlines in the Bellingham, WA to Las Vegas market) but Los Angeles has started strong for them and is likely to continue to be strong given the low fares. Ancillary fares are still a major portion (more than 30%) of the average fare. We are estimating EPS of $4.80 this year, so our price target would be at least $48."

To see more analyst ratings on ALGT Click Here.

Allegiant Travel Company (Allegiant Travel) is a leisure travel company focused on transporting travelers in small cities to leisure destinations, such as Las Vegas, Nevada, Phoenix, Arizona, Orlando, Florida, Tampa/St. Petersburg, Florida and Ft. Lauderdale, Florida.

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