In-Depth Examination Of 4 Analyst Recommendations For Allegiant Travel

Ratings for Allegiant Travel ALGT were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $73.5, a high estimate of $100.00, and a low estimate of $58.00. This current average represents a 13.53% decrease from the previous average price target of $85.00.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Allegiant Travel. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Allegiant Travel. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Allegiant Travel compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Allegiant Travel's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Allegiant Travel's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with 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.

A Deep Dive into Allegiant Travel's Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Challenges: Allegiant Travel's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -0.09%. This indicates a decrease in 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 excels beyond industry benchmarks, reaching -0.29%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Allegiant Travel's ROE stands out, surpassing industry averages. With an impressive ROE of -0.13%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Allegiant Travel's ROA excels beyond industry benchmarks, reaching -0.04%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.78.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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