BofA lowered the firm’s price target on Allegiant Travel (ALGT) to $45 from $50 and keeps an Underperform rating on the shares after Blackstone (BX) agreed to acquire Allegiant’s Sunseeker Resort Charlotte Harbor for $200M. This price equates to $255,000 per room, which was below the firm’s expected selling price of $236M, or $300,000 per room, the analyst tells investors. With the “highly telegraphed” sale now announced, the firm believes that weak fundamentals across the airline sector will come into focus, noting that its Q3 and 2025 forecasts for Allegiant are below consensus.
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Read More on ALGT:
- Allegiant Travel Company: Sell Rating Due to Financial Strain and Weak Sector Fundamentals
- Blackstone to acquire Sunseeker Resort Charlotte Harbor from Allegiant Travel
- Allegiant Travel price target lowered to $83 from $85 at Morgan Stanley
- Allegiant Travel assumed with a Neutral at UBS
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