Allegiant dividend suspension not due to fundamentals, says Raymond James

Raymond James analyst Savanthi Syth says Allegiant Travel’s dividend suspension is a reflection of “prudent” balance sheet management as its capital allocation requirements become clearer and not a signal of a deterioration in fundamentals over the last couple of months. The firm continues to expect Allegiant ‘s leverage to peak at the end of 2024 before improving gradually. The timing on the decision appears to be following greater clarity around the Boeing (BA) delivery plan, the analyst tells investors in a research note. The firm says the company’s CEO change was expected, but perhaps not the timing of it. Raymond James keeps an Outperform rating on Allegiant shares.