Allegiant Travel

Raymond James cut its estimates for airlines and raised jet fuel price forecasts for H2 2026, 2027 and 2028 by about 18%, 14% and 7% respectively, with the adjustment mainly reflecting higher refinery margins. The Brent forecast remained largely unchanged. Despite industry downgrades, the firm upgraded Allegiant from "Outperform" to "Strong Buy", citing company‑specific leverage, flexible capacity management and the Sun Country takeover; the stock rose more than 2% premarket. Raymond James also raised its U.S. domestic capacity forecast for Q4 from 1.5% to 2.3% and continues to see constructive demand trends in the U.S., while Europe shows mixed Q2 results. » More on de.investing.com

Raymond James raised its rating for Allegiant Travel from "Outperform" to "Strong Buy" and cut the price target from $138 to $116. The bank cited the stock’s disproportionate decline since the start of the quarter, opportunities for margin recovery, a flexible capacity model and expanded reach from the acquisition of Sun Country Airlines. The stock rose about 2.8% pre-market while the broader market fell. » More on de.investing.com

Allegiant Travel posted adjusted earnings of $2.19 per share in the second quarter and called it a record quarter, although revenue of $943.5 million missed expectations of $978.38 million. Operating margin was 9.2% and EBITDA was $157.8 million, supported by strong leisure demand and higher ancillary revenue. Management cites the integration of Sun Country and strategic initiatives as drivers, but expects about a 5.5% capacity reduction in Q3, an operating margin of around 2%, and a consolidated loss of about $0.50 per share. Investors weighed the large earnings surprise against the revenue shortfall, rising cost risks and the cautious outlook, after which the stock fell after hours. » More on de.investing.com