TD Cowen analyst Thomas Fitzgerald CFA maintained a Hold rating on Allegiant Travel Company today and set a price target of $65.00.
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Thomas Fitzgerald CFA has given his Hold rating due to a combination of factors affecting Allegiant Travel Company. The company is expected to benefit from fewer management distractions following the divestment of its resort, which should lead to margin expansion. However, much of this positive outlook seems to be already reflected in the current share price, and the company must avoid execution issues to realize potential gains.
Additionally, while Allegiant aims to increase its capacity flown by MAX aircraft, which could enhance earnings potential, there are concerns about the quality of incremental growth markets. Although management has identified numerous potential markets for expansion, there is skepticism about whether these opportunities are genuinely high-quality or if they represent markets that are underserved for valid reasons. The maturity of the domestic US market also suggests limited room for growth, contributing to the Hold rating.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $71.00 price target.