Allegiant Travel announces $1.5 billion acquisition of Sun Country
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12 Jan 26
Source: Barron's
Allegiant Travel Co's stock fell 6.31% as it crossed below the 5-day SMA, reflecting investor concerns amid the recent acquisition announcement.
The company has confirmed a $1.5 billion cash acquisition of Sun Country Airlines, which aims to consolidate resources and enhance its competitive position in the budget airline sector. This strategic move is expected to address rising operational costs and improve overall efficiency, with the deal projected to be accretive to earnings per share in the first year.
This acquisition signifies Allegiant's commitment to expanding its market share and optimizing its route network, potentially leading to long-term growth and profitability for the company.
Analyst Views on ALGT
Wall Street analysts forecast ALGT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALGT is 92.70 USD with a low forecast of 65.00 USD and a high forecast of 109.00 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.
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 91.440
Low
65.00
Averages
92.70
High
109.00
Current: 91.440
Low
65.00
Averages
92.70
High
109.00
About ALGT
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 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. The Company operates through Airline segment.
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.
