Allegiant Acquires Sun Country for $1.5 Billion Cash Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12 Jan 26
Source: Newsfilter
Sun Country Airlines' stock surged by 11.41% as it crossed above the 5-day SMA, reflecting positive investor sentiment following the announcement of its acquisition by Allegiant for $1.5 billion.
The acquisition deal, which includes $4.10 in cash and 0.1557 shares of Allegiant stock per Sun Country share, is expected to enhance shareholder value with a premium of 19.8%. This strategic move aims to consolidate resources and improve operational efficiency in the budget airline sector, addressing rising costs post-pandemic.
This merger not only signifies a significant consolidation trend within the industry but also positions Allegiant for long-term growth, potentially benefiting both companies and their shareholders.
Analyst Views on SNCY
Wall Street analysts forecast SNCY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNCY is 19.43 USD with a low forecast of 18.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 17.190
Low
18.00
Averages
19.43
High
21.00
Current: 17.190
Low
18.00
Averages
19.43
High
21.00
About SNCY
Sun Country Airlines Holdings, Inc. operates Sun Country Airlines, a hybrid low-cost air carrier that deploys shared resources across its scheduled service, charter, and cargo businesses. The Company focuses on serving leisure and visiting friends and relatives (VFR) passengers, charter customers, and providing crew, maintenance, and insurance (CMI) service to Amazon.com Services, LLC (Amazon), with flights throughout the United States and to destinations in Canada, Mexico, Central America, and the Caribbean. Its Passenger segment consists of two businesses: Scheduled Service and Charter. These businesses both utilize the Company's passenger fleet. Its Cargo segment provides air cargo services. It flies a single-family fleet of mid-life Boeing 737-NG aircraft. Its fleet consists of about 63 Boeing 737-NG aircraft. This includes 45 aircraft in the passenger fleet, 12 cargo operated aircraft through the A&R ATSA with Amazon, and six aircraft that are on lease to unaffiliated airlines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
