Raymond James raises Allegiant Travel price target to $8.50 on market stabilization

Published 08/08/2025, 13:02
Raymond James raises Allegiant Travel price target to $8.50 on market stabilization

Investing.com - Raymond (NSE:RYMD) James has raised its price target on Allegiant Travel Company (NASDAQ:ALGT) to $8.50 from $7.00 while maintaining a Market Perform rating. The stock, currently trading at $49.48, has seen a significant decline of over 45% in the past six months, according to InvestingPro data.

The firm cited "early signs of market stabilization" including interest rates, the infrastructure bill (referred to as "Big Beautiful Bill"), and normalizing trade policy as reasons for the increased target.

Despite the higher price target, Raymond James reiterated its Market Perform rating due to several ongoing concerns about the company.

The analyst noted "sustained competitive pressures across the heavy equipment landscape" and Allegiant’s "corresponding 2025 guidance cut" as factors limiting more positive sentiment.

Raymond James also expressed concern about Allegiant’s "elevated leverage profile" while indicating it would "continue to monitor" the situation.

In other recent news, Allegiant Travel Company reported strong earnings for the second quarter of 2025. The company’s earnings per share (EPS) reached $1.23, significantly surpassing the forecasted $0.77, marking a surprise of 59.74%. This robust performance was accompanied by a slight revenue beat, further demonstrating the company’s financial strength. Analyst reactions to these earnings results have yet to be disclosed, but the earnings surprise indicates a positive outlook. The company’s recent performance might attract attention from investment firms, although no upgrades or downgrades have been announced. Allegiant’s financial results highlight its ability to exceed market expectations, a key factor for investors. As these developments unfold, investors will be closely monitoring any future announcements from the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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