ALGT Stock Today: Wall Street Zen Lifts to Hold — December 28
ALGT stock is in focus after Wall Street Zen upgraded Allegiant Travel to Hold. The move follows a six‑month run of about 52% and better Q4 capacity and margin guidance. ALGT closed around $84.64, placing shares near the $85 median target and the $79 consensus. We break down the new analyst signal, how it aligns with recent calls, and what the price, valuation, and technicals say for U.S. investors watching airline stocks into early 2026.
Why the upgrade matters now
Wall Street Zen raised Allegiant Travel from Sell to Hold, citing improved Q4 capacity and margin outlook and strong recent performance. That aligns with the stock’s sharp six‑month rebound, while acknowledging valuation is tighter near published targets. This balanced stance suggests ALGT stock may track updates to guidance and demand trends. Read the coverage recap here: source.
A day earlier, Raymond James cut its view on valuation, highlighting limited upside after the rally. Street positioning remains split: 1 Strong Buy, 3 Buy, and 7 Hold, with a consensus Hold and median target of $85 versus a $79 consensus average. That leaves ALGT stock sensitive to fresh data and rating moves. Details: source.
Price, valuation, and targets
Shares last traded near $84.64, with a day range of $82.10 to $85.21 and a 52‑week span of $39.80 to $107.57. Price is above the 50‑day ($72.35) and 200‑day ($59.30) averages, reflecting a firm uptrend. With the price near the $85 median target and above the $79 consensus, near‑term upside could depend on guidance strength.
Revenue multiples look modest around 0.60x price‑to‑sales and 0.60x EV/sales. Earnings remain pressured, with EPS at -$16.37 and a negative P/E. Free cash flow yield is about 6.5%, while debt to equity is near 2.03. Interest coverage is negative, though net debt to EBITDA of roughly 0.29 suggests leverage is manageable. For ALGT stock, cash generation versus earnings drag is the key trade‑off.
Technical setup and levels
Trend signals lean constructive. RSI sits near 63.7 and ADX around 33.5, showing a strong trend. The MACD histogram is slightly negative, hinting at a pause. Bollinger Bands frame $76.08 to $89.74, with the middle band near $82.91. Average True Range of 3.59 points to active swings. For ALGT stock, momentum favors dips holding above key moving averages.
Near‑term support sits around the Bollinger middle band at $82.91, then Friday’s low near $82.10, with stronger support near the 50‑day at $72.35. Resistance is the day high around $85.21 and the upper band near $89.74, then $90. Volume of 107,400 versus a 316,108 average suggests moves may be choppy if liquidity stays light.
What to watch next
The next earnings date is February 4, 2026. We will watch updated capacity plans, margin commentary, and unit revenue trends. Fuel costs, ancillary revenue, and demand in leisure routes will matter most. Clear guidance could justify multiples above revenue peers. ALGT stock likely reacts quickly to any revision in outlook or network plans.
Recent coverage highlighted liquidity strength, but investors should still monitor cash generation versus obligations. Free cash flow yield near 6.5% helps, while net debt to EBITDA looks reasonable. Interest coverage is negative, so rates and refinancing terms matter. In airline stocks, cash, fuel, and labor often decide the near‑term path more than accounting earnings.
Final Thoughts
Wall Street Zen’s move to Hold acknowledges both momentum and valuation for ALGT stock. Price now sits near the $85 median target and above the $79 consensus, so fresh upside likely needs stronger guidance or a favorable cost backdrop. Technicals remain supportive, with RSI and ADX signaling trend strength and clear levels at $82.91 support and $89.74 resistance. We think near‑term direction hinges on capacity, margin updates, fuel costs, and booking trends. Short‑term traders can lean on defined levels and ATR risk, while long‑term investors may wait for the February 4 earnings print to reassess valuation versus cash generation. This is informational only, not investment advice.
FAQs
The upgrade reduces downside risk from a prior Sell, but it is not a clear buy signal. Shares trade near the $85 median target and above the $79 consensus. If guidance and demand keep improving, upside can continue. If margins stall or fuel rises, risk grows. Position sizing and risk control matter.
Current tallies show 1 Strong Buy, 3 Buy, and 7 Hold, with zero Sell ratings, for a consensus Hold and a 3.00 score. Ratings reflect improved operations but valuation tension after a big rebound. Watch for estimate revisions and target changes as new guidance comes in.
Published targets span a low of $50 and a high of $105, with a $79 consensus and $85 median. With shares near $84.64, upside to near‑term targets looks limited unless guidance strengthens. A break above $89 to $90 could open room toward higher targets, if fundamentals support it.
Allegiant Travel is scheduled to report on February 4, 2026. Focus on updated capacity, margin guidance, unit revenue, ancillary sales, fuel costs, and booking trends. Commentary on network efficiency and aircraft utilization will also guide expectations. These items can move the stock more than headline EPS alone.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
