8 Analysts Have This To Say About Allegiant Travel

During the last three months, 8 analysts shared their evaluations of Allegiant Travel ALGT, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $65.0, a high estimate of $90.00, and a low estimate of $42.00. This upward trend is evident, with the current average reflecting a 25.34% increase from the previous average price target of $51.86.

Decoding Analyst Ratings: A Detailed Look

The perception of Allegiant Travel by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Allegiant Travel. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Allegiant Travel compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Allegiant Travel's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Allegiant Travel's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Delving into Allegiant Travel's Background

Allegiant Travel Co provides travel services in the United States. It sells air transportation on a stand-alone basis or bundled with air-related and third-party services and products. Customers may also purchase fixed-fee flying arrangements to receive charter service on a year-round and ad hoc basis. Additionally, customers may purchase hotel rooms, ground transportation, and other attractions (for example, entertainment show tickets) to accommodate a trip. The company's operating segment includes Airline, Sunseeker Resort, and other non-airlines. Customers purchase travel tickets at airport ticket counters, online, or through its telephone reservation center.

Allegiant Travel: A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Decline in Revenue: Over the 3 months period, Allegiant Travel faced challenges, resulting in a decline of approximately -0.56% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Allegiant Travel's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -6.54%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Allegiant Travel's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -2.79%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Allegiant Travel's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.76%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Allegiant Travel's debt-to-equity ratio is below the industry average at 1.75, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.