Allegiant Travel Company (ALGT – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Ravi Shanker from Morgan Stanley maintained a Hold rating on the stock and has a $95.00 price target.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Ravi Shanker has given his Hold rating due to a combination of factors surrounding Allegiant Travel Company’s current strategy and market position. While Allegiant’s unique business model and network have historically been strengths, the market is now closely examining how the company will achieve its ambitious earnings growth outlined for FY25. The company’s guidance indicates a focus on volume-driven EPS growth, which diverges from the industry’s current preference for RASM-driven margin expansion. This strategic choice may require more proof of success to satisfy market expectations.
Additionally, although Allegiant has made significant strides in areas such as the Sunseeker separation and fleet modernization, there remains uncertainty in projecting normalized EPS growth. The bold moves by management are acknowledged, yet the path to achieving their goals remains uncertain and is a ‘show-me’ story. Consequently, despite a strong recovery in stock price, the uncertainties in execution and market reception have led to a cautious Hold rating.
According to TipRanks, Shanker is a 3-star analyst with an average return of 1.6% and a 51.92% success rate. Shanker covers the Industrials sector, focusing on stocks such as American Airlines, Alaska Air, and JetBlue Airways.
In another report released today, Barclays also maintained a Hold rating on the stock with a $100.00 price target.