Imperial Capital assumed coverage on shares of Allegiant Travel Co. (NASDAQ:ALGT) in a research note published on Friday morning. The brokerage issued an outperform rating and a $164.00 target price on the stock.

“While ALGT now faces a number of operational and cost challenges as it transitions to a single aircraft type from its current mixed fleet, it plans to maintain lower capacity growth of 5–10 percent between FY17 and FY19,” analyst Michael Derchin wrote in a note.In addition, the airline attracts leisure customers with low fares then aggressively markets higher-margin vacation packages and ancillary products.,p>Further, Derchin said mid-sized markets offers significant growth opportunity as many of these mid-sized cities, such as Cincinnati and Cleveland, were former hubs of the Big 3 (American Airlines Group Inc (NASDAQ: AAL), Delta Air Lines, Inc. (NYSE: DAL) and United Continental Holdings Inc (NYSE: UAL)) that have been “de-hubbed” following consolidation.Meanwhile, Allegiant is transitioning to an all-Airbus fleet over the next few years. The company plans to retire its highly profitable but aging MD-80 fleet by FY19, and is replacing those aircraft with a combination of new and used A320s.”Following the MD-80 replacement period, capacity growth is expected to resume between 10 percent and 15 percent per year as a result of ALGT’s scalable business model and numerous profitable market opportunities,,” Imperial Capital’s analyst wrote.

Other analysts have also recently issued reports about the stock. Zacks Investment Research cut shares of Allegiant Travel from a hold rating to a strong sell rating in a research report on Wednesday, August 24th. Raymond James Financial Inc. upgraded shares of Allegiant Travel from a market perform rating to an outperform rating and set a $190.00 price objective on the stock in a research note on Tuesday, June 14th. Stifel Nicolaus dropped their price objective on shares of Allegiant Travel from $200.00 to $155.00 and set a buy rating on the stock in a research note on Wednesday, August 3rd. Buckingham Research upgraded shares of Allegiant Travel from a neutral rating to a buy rating and set a $168.00 price objective on the stock in a research note on Friday, September 23rd. Finally, Cowen and Company dropped their price objective on shares of Allegiant Travel from $165.00 to $147.00 and set a market perform rating on the stock in a research note on Monday, August 1st. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and seven have given a buy rating to the stock. The company presently has an average rating of Hold and a consensus price target of $177.92.

Shares of Allegiant Travel (NASDAQ:ALGT) traded up 2.37% on Friday, hitting $148.36. The stock had a trading volume of 52,890 shares. Allegiant Travel has a 12 month low of $121.70 and a 12 month high of $228.79. The stock has a market cap of $2.44 billion, a PE ratio of 10.57 and a beta of -0.09. The company has a 50 day moving average price of $135.73 and a 200-day moving average price of $146.54.

Allegiant Travel (NASDAQ:ALGT) last announced its quarterly earnings results on Friday, July 29th. The company reported $3.68 EPS for the quarter, topping the consensus estimate of $3.55 by $0.13. The business had revenue of $344.90 million for the quarter, compared to analysts’ expectations of $343.11 million. Allegiant Travel had a net margin of 17.94% and a return on equity of 64.40%. The business’s quarterly revenue was up 7.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.18 EPS. On average, equities research analysts anticipate that Allegiant Travel will post $13.13 earnings per share for the current year.

Several hedge funds have recently made changes to their positions in the stock. BlackRock Inc. raised its stake in shares of Allegiant Travel by 157.9% in the first quarter. BlackRock Inc. now owns 820 shares of the company’s stock valued at $146,000 after buying an additional 502 shares during the period. Pacer Advisors Inc. bought a new stake in shares of Allegiant Travel during the second quarter valued at about $148,000. Bank of Montreal Can bought a new stake in shares of Allegiant Travel during the second quarter valued at about $151,000. Barclays PLC bought a new stake in shares of Allegiant Travel during the second quarter valued at about $155,000. Finally, Invictus RG raised its stake in shares of Allegiant Travel by 25.0% in the second quarter. Invictus RG now owns 1,359 shares of the company’s stock valued at $206,000 after buying an additional 272 shares during the period. Institutional investors and hedge funds own 79.35% of the company’s stock.

Allegiant Travel Company Profile

Allegiant Travel Company is a leisure travel company. The Company is focused on providing travel services and products to residents of under-served cities in the United States. Its products and services include scheduled service air transportation, air-related ancillary products and services, third-party ancillary products and services, fixed fee contract air transportation and other revenue.

5 Day Chart for NASDAQ:ALGT

Receive News & Stock Ratings for Allegiant Travel Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Allegiant Travel Co. and related stocks with our FREE daily email newsletter.