UPDATE: Raymond James Upgrades Allegiant Travel Company (ALGT) to Outperform

Raymond James analyst Savanthi Syth upgraded Allegiant Travel Company (NASDAQ: ALGT) from Market Perform to Outperform with a price target of $150.00.

The analyst comments "In early-January, we downgraded ALGT from Strong Buy to Market Perform due to “mounting risks on the horizon”, particularly idiosyncratic risks related to operations (i.e., high cancellation rates), pilot cost pressure, Sunseeker capex/cost escalation, and the introduction of a second fleet type. There are encouraging signs that operational execution has improved with cancellation rates moderating from ~7% in 1Q22 and ~4% in 2Q22 to ~1% QTD (vs. the industry average of 4%/2%/1%). Moreover, the Sunseeker capex increase has already played out and we believe the share price better reflects risks around the second fleet type. Additionally, following a couple of quarters of overpromising and underdelivering, we believe there is less risk of a miss (albeit, our 2H22-2024E EPS are still below consensus, reflecting a higher fuel forecast and an assumption of a recession)."

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 $96.99 yesterday.

You May Also Be Interested In

• New Street Research Upgrades Micron Technology (MU) to Buy
• Ladenburg Thalmann Upgrades ONE Gas Inc. (OGS) to Buy
• Raymond James Starts Polaryx Therapeutics (PLYX) at Strong Buy