Deutsche Bank analyst Michael Linenberg upgraded Allegiant Travel to Buy from Hold with a price target of $145, up from $110. The analyst expects a “significant improvement” in the company’s return on invested capital over the next three years. For 2022, the airline produced a ROIC that was middle of the pack and margins that were only slightly better than average, the analyst tells investors in a research note. However, the firm thinks Allegiant could meaningfully outperform the industry in ROIC improvement for 2023 – 2025, setting the shares up well.
Published first on TheFly
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