Allegiant Travel downgraded to Neutral at Susquehanna ahead of ‘transition year’

As previously reported, Susquehanna analyst Christopher Stathoulopoulos downgraded Allegiant Travel (ALGT) to Neutral from Positive with a price target of $90, down from $95, ahead of what he sees as "another transition year for the airlines" in 2023. Capacity outlooks are still not yet fully de-risked amid growing signs of a slowdown, so he prefers carriers with what he views as lower-risk available seat mile growth, Stathoulopoulos tells investors. His Positive view on Allegiant through the COVID-19 pandemic was predicated on its low-frequency/variable approach to capacity, but as he considers his FY23 investment framework and coverage as a whole, he sees better risk-reward in ultra-low-cost peers Frontier Group (ULCC) and Sun Country Airlines (SNCY), Stathoulopoulos said.