{
  "id": 7278634,
  "title": "UBS upgrades Allegiant Travel to Buy, sees 35% upside after sell-off",
  "url": "https://urgent.news/2026/09/14/ubs-upgrades-allegiant-travel-to-buy-sees-35-upside-after-sell-off",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-14T08:39:55.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/ubs-upgrades-allegiant-travel-to-buy-sees-35-upside-after-selloff-4898949"
  },
  "original_language": "en",
  "account": "UBS upgraded Allegiant Travel to a \"Buy\" rating on Monday, expressing confidence in the airline's earnings potential post-acquisition of Sun Country. The brokerage sets a price target of $107, indicating a 35% upside from the stock's September 11 closing price of $78.27. Despite the recent sell-off, Allegiant shares still lag behind their 52-week high of $123.63. UBS sees significant reconciliation opportunities, projecting adjusted EPS of $8.88 in 2027 and $13.36 in 2028, showcasing a 65% annualized growth over the next two years. The brokerage expects that about 50% of the targeted synergies, initially set at $140 million annually, could be realized by 2027, boosting Allegiant's revenue per available seat mile (RASM) and enabling it to outpace its expenses before fuel cost per available seat mile (CASM-ex). UBS also highlights the attractiveness of Allegiant's aircraft fleet, valuing it at $2.2 billion, which surpasses the company's current market capitalization of approximately $2.1 billion. Furthermore, UBS observes a positive trend in demand, with Allegiant's sales running 53% above year-earlier levels on average over the past four weeks, compared to 46% growth over the previous four-week period. The brokerage estimates that 68% of the combined company's routes lack direct competition from other U.S. airlines, safeguarding pricing and margins. The imminent analyst day on December 7 is the key near-term catalyst, with UBS anticipating Allegiant could raise its synergy targets during the event.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}