Bank of America Merrill Lynch Raises PT on Allegiant Travel to $49

Bank of America Merrill Lynch is out with its report today on Allegiant Travel

, raising its PT to $49. In a note to clients, Bank of America Merrill Lynch writes, "Our 12-month price objective for ALGT is $49. To neutralize the high degree of uncertainty in airline estimates, we use a blend of seven valuation measures: Adjusted (for fleet age) EV /Sales, P/E, EV/EBITDA, EV/EBITDAR, P/FCF, P/FCF Normalized (assumes replacement capex) and Option Value analysis. Because of their faster growth, higher ROIC and greater earnings stability, low-fare carriers often carry a 50% premium to legacy airlines." At the time of posting, shares of ALGT were trading at $48.31, down 0.06% from Monday's close.