Allegiant Travel Company (ALGT) Sells Sunseeker Resort to Blackstone Real Estate; Morgan Stanley Maintains 'Equal Weight' Rating

With a low P/E multiple and potential upside for investors, Allegiant Travel Company (NYSE:ALGT) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.

With a $200 million transaction on July 7, 2025, Allegiant Travel Company (NYSE:ALGT) sold its 785-room Sunseeker Resort Charlotte Harbor to Blackstone Real Estate, following financial struggles at the resort, which drove ALGT’s decision to refocus on its core airline business.

This sale occurs at a time when the airline is facing ongoing industry challenges. Morgan Stanley decreased its price target on Allegiant Travel Company (NYSE:ALGT) from $85 to $83, maintaining an ‘Equal Weight’ rating. Despite the company’s stable outlook for Q2 following volatile months of February and March, the analyst’s rating is driven by airline executives’ warnings of underlying pressures, particularly regarding weak domestic revenue per available seat mile.

Following the completion of the resort divestiture and with revenue concerns persisting, Allegiant Travel Company (NYSE:ALGT) aims to tighten its focus on aviation amid a complex operating environment.

Allegiant Travel Company (NYSE:ALGT) is a U.S.-based air carrier catering to underserved cities in the country. It is on the list of cheap transportation stocks.

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:  7 Best Stocks to Invest in for a Quick Return and 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio.

Disclosure: None.