Imperial Capital started coverage on shares of Allegiant Travel Co. (NASDAQ:ALGT) in a research report sent to investors on Friday morning. The firm issued an outperform rating and a $164.00 price objective on the stock.
“While ALGT now faces a number of operational and cost challenges as it transitions to a single aircraft type from its current mixed fleet, it plans to maintain lower capacity growth of 5–10 percent between FY17 and FY19,” analyst Michael Derchin wrote in a note.In addition, the airline attracts leisure customers with low fares then aggressively markets higher-margin vacation packages and ancillary products.,p>Further, Derchin said mid-sized markets offers significant growth opportunity as many of these mid-sized cities, such as Cincinnati and Cleveland, were former hubs of the Big 3 (American Airlines Group Inc (NASDAQ: AAL), Delta Air Lines, Inc. (NYSE: DAL) and United Continental Holdings Inc (NYSE: UAL)) that have been “de-hubbed” following consolidation.Meanwhile, Allegiant is transitioning to an all-Airbus fleet over the next few years. The company plans to retire its highly profitable but aging MD-80 fleet by FY19, and is replacing those aircraft with a combination of new and used A320s.”Following the MD-80 replacement period, capacity growth is expected to resume between 10 percent and 15 percent per year as a result of ALGT’s scalable business model and numerous profitable market opportunities,,” Imperial Capital’s analyst wrote.
A number of other equities analysts also recently commented on the stock. Cowen and Company cut their price objective on shares of Allegiant Travel from $165.00 to $147.00 and set a market perform rating for the company in a research report on Monday, August 1st. Zacks Investment Research downgraded shares of Allegiant Travel from a hold rating to a strong sell rating in a research report on Wednesday, August 24th. Raymond James Financial Inc. upgraded shares of Allegiant Travel from a market perform rating to an outperform rating and set a $190.00 price objective for the company in a research report on Tuesday, June 14th. Credit Suisse Group AG set a $133.00 price target on shares of Allegiant Travel and gave the company a hold rating in a report on Tuesday, September 13th. Finally, Stifel Nicolaus cut their price target on shares of Allegiant Travel from $200.00 to $155.00 and set a buy rating for the company in a report on Wednesday, August 3rd. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and seven have issued a buy rating to the company. Allegiant Travel presently has an average rating of Hold and a consensus target price of $177.92.
Shares of Allegiant Travel (NASDAQ:ALGT) traded up 2.37% during mid-day trading on Friday, hitting $148.36. 52,890 shares of the stock traded hands. The firm has a market cap of $2.44 billion, a price-to-earnings ratio of 10.57 and a beta of -0.09. Allegiant Travel has a 12-month low of $121.70 and a 12-month high of $228.79. The firm’s 50 day moving average price is $135.73 and its 200 day moving average price is $146.54.
Allegiant Travel (NASDAQ:ALGT) last announced its quarterly earnings data on Friday, July 29th. The company reported $3.68 EPS for the quarter, topping the Zacks’ consensus estimate of $3.55 by $0.13. The company earned $344.90 million during the quarter, compared to the consensus estimate of $343.11 million. Allegiant Travel had a net margin of 17.94% and a return on equity of 64.40%. Allegiant Travel’s quarterly revenue was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.18 EPS. On average, equities research analysts predict that Allegiant Travel will post $13.13 EPS for the current fiscal year.
Large investors have recently added to or reduced their stakes in the company. Teachers Advisors Inc. boosted its stake in Allegiant Travel by 1.8% in the first quarter. Teachers Advisors Inc. now owns 19,743 shares of the company’s stock valued at $3,515,000 after buying an additional 358 shares in the last quarter. Prudential Financial Inc. boosted its stake in Allegiant Travel by 6.0% in the first quarter. Prudential Financial Inc. now owns 45,530 shares of the company’s stock valued at $8,107,000 after buying an additional 2,594 shares in the last quarter. Franklin Resources Inc. boosted its stake in Allegiant Travel by 1.1% in the first quarter. Franklin Resources Inc. now owns 721,769 shares of the company’s stock valued at $128,520,000 after buying an additional 7,631 shares in the last quarter. BlackRock Inc. boosted its stake in Allegiant Travel by 157.9% in the first quarter. BlackRock Inc. now owns 820 shares of the company’s stock valued at $146,000 after buying an additional 502 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. boosted its stake in Allegiant Travel by 0.3% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 313,222 shares of the company’s stock valued at $55,772,000 after buying an additional 1,061 shares in the last quarter. 79.35% of the stock is currently owned by institutional investors.
About Allegiant Travel
Allegiant Travel Company is a leisure travel company. The Company is focused on providing travel services and products to residents of under-served cities in the United States. Its products and services include scheduled service air transportation, air-related ancillary products and services, third-party ancillary products and services, fixed fee contract air transportation and other revenue.
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