UBS Maintains a 'Buy' on Allegiant Travel Co (ALGT); Solid Q2, Slide in Q3; Defensive Airline

UBS maintains a 'Buy' on Allegiant Travel Company (NASDAQ: ALGT) price target of $75.00 (from $71.50).

Analyst, Kevin Crissey, said, "This was a strong quarter and marked the start of charging for onboard bags. We expect this new fee to be highly accretive and much more meaningful in Q3 and Q4...Management noted some softening in demand trends for August and Sept. Given reports from other airlines this was not a surprise but wasn’t great to hear anyway. We view ALGT as a relatively defensive airline stock which has several company specific initiatives which should help drive better earnings."

UBS modified FY12 EPS estimate from $4.53 to $4.43 and FY13 from $5.68 to $5.63.

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 $66.50 yesterday.

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