Analysts have raised their price target for Allegiant Travel by $15 to $65, citing improved demand trends and a more favorable industry outlook ahead of upcoming earnings reports.

Analyst Commentary

Recent updates from street research reflect a mixed but evolving view on Allegiant Travel's outlook, as price targets have been adjusted upward heading into the company's quarterly earnings reports. Analysts remain closely attuned to shifts in industry trends, performance metrics, and the airline's execution against its strategic goals.

Bullish Takeaways

• Bullish analysts have raised their price targets for Allegiant Travel, reflecting growing confidence in the company’s near-term performance and industry recovery.
• Improving demand and positive fare trends are providing an important offset to ongoing cost headwinds, supporting better than expected financial results.
• The sale of non-core assets, such as Sunseeker Resort, is viewed as a move that simplifies operations and allows Allegiant Travel to redirect focus toward its core airline business.
• Industry-wide trends such as product de-commoditization and advanced merchandising platforms are anticipated to drive additional growth. Allegiant could benefit from broader sector tailwinds.

Bearish Takeaways

• Bearish analysts remain cautious and maintain neutral ratings, highlighting that although demand is improving, expense pressures persist for airlines.
• The competitive gap between top-tier airlines and others continues to widen. This suggests Allegiant may face challenges sustaining relative outperformance.
• Execution risk is noted as the company transitions back to its core airline focus following portfolio changes. Profitability will depend on successful operational management.

What's in the News

• Allegiant Travel introduced three new nonstop routes connecting five cities, including service to Burbank, California, with fares starting at $39. The new service will launch in February 2026 (company announcement).
• The airline recently added Atlantic City, New Jersey to its network, offering four new routes connecting coastal destinations. The company also extended its flight schedule through May 2026 (company announcement).
• Preliminary operating results for September 2025 showed year-over-year passenger increases. The airline reported 983,840 passengers for the month and 4,572,081 for the third quarter, though load factors declined slightly (operating results).
• Allegiant revised its third quarter 2025 earnings guidance upward, expecting to finish at the high end of operating margin and EPS ranges due to strong revenue and improved cost performance (company guidance).
• The company completed its previously announced share buyback program and repurchased nearly 3.8 million shares over several years (buyback update).

Valuation Changes

• Fair Value: Unchanged at $67.67, indicating no adjustment to the consensus estimate for Allegiant Travel’s fair market valuation.
• Discount Rate: Held steady at 12.32%, reflecting consistent assumptions in risk and return expectations for the company.
• Revenue Growth: Increased slightly from 5.00% to 5.10%, suggesting a modest improvement in anticipated top-line expansion.
• Net Profit Margin: Reduced marginally from 9.07% to 9.04%, indicating a minimal decrease in expected overall profitability.
• Future P/E: Remains unchanged at 6.02x, reflecting stable expectations for the company’s forward earnings multiple.