ALGT: Industry Shifts And New Routes Will Guide Performance Into 2026

Analysts have slightly raised their price target for Allegiant Travel to approximately $69.58 per share. This revision comes after recent model updates following stronger Q3 results and improving industry trends.

Analyst Commentary

Recent analysis on Allegiant Travel reflects a mixture of optimism and caution among industry experts, especially in light of the company's latest quarterly performance and shifting industry trends. Analysts have re-evaluated their models and updated their expectations, influencing both the short- and long-term outlook for the stock.

• Bullish analysts highlight Allegiant Travel’s improved earnings in the most recent quarter, supporting multiple price target increases.
• Stronger customer demand and improving fare trends have allowed the company to offset some modest expense pressures, contributing to enhanced profitability projections.
• Broader industry changes driven by advancements in technology and merchandising platforms are expected to create new growth opportunities. This may favor differentiated carriers like Allegiant Travel.
• Raised price targets suggest confidence in both near-term execution and Allegiant Travel’s ability to navigate a rapidly evolving airline environment.

• Bearish analysts remain cautious, maintaining neutral ratings as they await further evidence of sustained momentum. This is especially relevant given lingering uncertainties in the competitive airline landscape.
• Concerns remain regarding expense pressures, as even with improving demand, cost management continues to be a critical factor for margin improvement.
• The outlook highlights the widening gap between well-positioned airlines and the rest of the industry, and there are questions about Allegiant Travel’s ability to consistently stay among the stronger performers.

What's in the News

• Allegiant Air pilots, represented by Teamsters Local 2118, organized a nationwide informational picket at all 22 crew bases. They are pushing for a contract with industry-standard compensation and improved working conditions. Pilots voted by 97 percent to authorize a strike and issued a vote of no confidence in senior leadership and the board, raising concerns about leadership and crew retention. (Key Developments)
• The company announced 30 new nonstop routes connecting 35 cities across the country, including four new markets, with introductory one-way fares as low as $39. The expanded network is set to launch in the first half of 2026 to popular leisure destinations. (Key Developments)
• Preliminary traffic results for October 2025 showed significant year-over-year growth. Scheduled Service passengers increased to 1,488,444 from 1,168,344, load factor rose to 81.9 percent from 78.5 percent, and departures climbed to 10,553 from 8,679. (Key Developments)
• Allegiant Travel offered new or updated earnings guidance, projecting a double-digit operating margin for the fourth quarter of 2025, reflecting continued positive trends in operating performance. (Key Developments)
• Earlier in September 2025, Allegiant introduced three new nonstop routes, including new service to Burbank, California, with fares starting at $39. This move further expanded its leisure-focused network. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen slightly, moving from $69.17 to $69.58 per share.
• Discount Rate has fallen from 12.41 percent to 11.87 percent, reflecting a modest decrease in perceived risk.
• Revenue Growth projections remain largely unchanged, with a marginal decrease from 4.84 percent to 4.83 percent.
• Net Profit Margin is projected to increase slightly, up from 10.41 percent to 10.66 percent.
• Future P/E ratio has decreased from 5.40x to 5.23x, indicating a lower multiple based on updated forecasts.