Analyst Christopher Stathoulopoulos from Susquehanna reiterated a Hold rating on Allegiant Travel Company and increased the price target to $50.00 from $45.00.
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Christopher Stathoulopoulos has given his Hold rating due to a combination of factors impacting Allegiant Travel Company. The anticipated sale of the Sunseeker Resort marks a pivotal shift back to the company’s core airline operations, which is expected to streamline its business and financial reporting. Despite this positive development, there are uncertainties regarding how Allegiant will manage its unit costs, especially with the pilot collective bargaining agreement still unresolved.
Additionally, while Allegiant’s recent financial performance exceeded expectations, with a reported adjusted EPS of $1.23 for 2Q25, there are concerns about future capacity and cost management. The potential for RASM growth through fleet expansion and service enhancements is promising, yet the lack of clarity on cost offsets tempers enthusiasm. These mixed factors contribute to the Hold rating, reflecting both optimism for growth and caution over unresolved cost issues.
In another report released on July 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $52.00 price target.