Allegiant Travel price target lowered to $85 from $93 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Allegiant Travel (ALGT) to $85 from $93 and keeps an Equal Weight rating on the shares. Allegiant, which now expects 2025 capacity growth of 13%, down from 17% previously following the March/April demand air pocket, “possibly had the most to prove of any airline” exiting Q4 earnings with questions around their accelerated capacity plan and strategic options for Sunseeker, the analyst tells investors. While the market “forced the issue” on their accelerated capacity plan, it remains unclear where normalized EPS lies, the analyst added.