Allegiant Travel Company (ALGT) Stock AnalysisALGTAllegiant Travel Company

Allegiant Travel Company is a leisure travel company focused on providing travel and leisure services and products to residents of under-served cities in the United States. The Company operates through Airline segment. The Company provides various travel services and products, including scheduled service air transportation, ancillary air-related products and services, third party products and services, and fixed-fee contract air transportation. Its scheduled service air transportation provides scheduled air transportation on limited-frequency, nonstop flights predominantly between under-served cities and leisure destinations. Its ancillary air-related products and services provide unbundled air-related services and products in with air transportation. Its third party products and services offer third party travel products such as hotel rooms, rental cars, and travel insurance from a third party insurer for sale to our passengers. It operates in the Industrials sector (AIR TRANSPORTATION, SCHEDULED industry).

Allegiant Travel Co is a good buy right now due to its current price of $76.43, which is significantly below the analyst price targets, including $110 from Raymond James and $156 from Citi. The forward P/E ratio of 6.44 indicates strong potential earnings growth, especially as analysts expect significant EPS growth from the recent acquisition of Sun Country. However, the main risk is the high debt-to-equity ratio of 156.38%, which could impact financial stability if not managed carefully.

14 analysts cover ALGT: 3 rate it Buy, 10 Hold and 1 Sell. The average price target is 104.75.