Allegiant Travel resumed with a Buy at Goldman Sachs

Goldman Sachs analyst Catherine O’Brien resumed coverage of Allegiant Travel with a Buy rating and $96 price target. While positive on the backdrop for airlines, the analyst says the economic outlook is uncertain. In this environment, she favors stocks with "idiosyncratic earnings drivers, relatively more recovery tailwinds remaining, or characteristics that reduce downside risk." O’Brien is positive on Allegiant as she sees a "mis-pricing of execution risk" tied to its entry into the hotel business as well as higher-than-industry average margin expansion due to improved operations and ancillary tailwinds.