Evercore ISI Upgrades Allegiant Travel (ALGT) Stock to Outperform

Allegiant Travel Company (NASDAQ:ALGT) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Evercore ISI upgraded the company’s stock to “Outperform” from “In Line” with a price objective of $75, as reported by The Fly. This upgrade comes amidst the company’s plans to sell its Sunseeker Resort, enabling it to focus entirely on the leisure-focused airline operations. Therefore, the firm cited business model simplification as a critical factor in the decision to upgrade Allegiant Travel Company (NASDAQ:ALGT)’s stock.

Allegiant Travel Company (NASDAQ:ALGT)’s core business has a flexible model with the capability to adjust capacity on the basis of demand, and such strengths were less visible recently. The firm sees 2025 as a transition year as the company grows into the infrastructure investments already made. With the expected hotel sale and a more modest capacity growth expected into 2026, the firm opines that Allegiant Travel Company (NASDAQ:ALGT) remains well-placed to restore its core earnings power. Notably, Blackstone and Allegiant Travel Company (NASDAQ:ALGT) announced that funds affiliated with Blackstone Real Estate have decided to acquire Sunseeker Resort Charlotte Harbor for $200 million.

Allegiant Travel Company (NASDAQ:ALGT) is a leading player in the broader industrials sector since it provides air transportation services.

Diamond Hill Capital, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Other bottom Q1 contributors included First Advantage, Civitas Resources and Allegiant Travel Company (NASDAQ:ALGT). Regional airline Allegiant Travel fell against a challenging macroeconomic backdrop and concerns about consumer spending, which could hurt customer demand. Further, there are some concerns the recently announced US tariffs could impact Boeing’s ability to deliver new planes to Allegiant as expected. However, we maintain our conviction in Allegiant’s resiliency in the long term and are maintaining our position.”

While we acknowledge the potential of ALGT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.