Allegiant strengthened 7.8% during trade yesterday in the wake of its 3Q2010 earning release. Allegiant was the best performing airline stock in the US market after upbeat outlooks from analysts. At the other end of the spectrum, Cebu Air (-4.5%) fell sharply to finish the day’s trade near its float price.
Analysts maintain bullish outlook on Allegiant
Hudson Securities lifted its price target on Allegiant Travel Company (+7.8%) to USD58 from USD57 and reaffirmed its “buy” rating. The stock closed yesterday at USD46.71.
In a note to clients, Hudson Securities wrote: "Since July, ALGT short interest (now at 21% and about 19 days to cover) has risen, leaving it the number one shorted airline stock. Shares are down 27% from a 52- week high on revenues that have disappointed, however, we think that likely changes. Given our upward earnings revision and our view that the Street needs to follow, we think short covering likely helps move the stock higher in the coming weeks."
Dahlman Rose & Company stated that Allegiant’s 3Q2010 EPS performance of USD0.67 cents was above its estimate of USD0.65 cents and the consensus estimate of USD0.64 cents. Dahlman Rose expects growth in 4Q2010 and 1Q2011 and maintained its “hold” rating on Allegiant shares.
South Asian LCCs mostly down during trade
Selected LCCs daily share price movements (% change): 28-Oct-2010
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