ALGT - Allegiant Travel loses bull rating at Barclays due to more uncertainties

2023-03-10 07:14:58 ET

Barclays cut its rating on Allegiant Travel Company ( NASDAQ: ALGT ) to Equal Weight from Overweight after shuffling preferences across the airline sector.

Analyst Brandon Oglenski and team said they are stepping back from an incrementally more levered small cap Allegiant ( ALGT ) amid the new macroeconomic backdrop.

The view on the airline stock is that ALGT's solid airline management team with an attractive peak leisure operating model is balanced by uncertainties surrounding Sunseeker resort development, as well as new Boeing 737 MAX deliveries that could add financial leverage and network complexity to the business.

Barclays assigned a price target on Allegiant ( ALGT ) of $105 vs. the prior PT of $96. The PT is based on the average of applying a 13.0X P/E multiple to the 2024 EPS estimate of $8.30 and a 6.0X EV/EBITDAR multiple to the 2024 EBITDAR estimate of $0.6B.

Shares of Alelgiant Travel Company rose 1.22% in premarket trading to $102.00.

The Seeking Alpha Quant Rating on Allegiant Travel is Hold.

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