UPDATE: Raymond James Reiterates on Allegiant Travel Company on Increased EPS Estimates

In a report published Monday, Raymond James analyst Savanthi Syth reiterated an Outperform rating on Allegiant Travel Company ALGT, and raised the price target from $118.00 to $120.00. In the report, Raymond James noted, “Following downward estimate revisions over the past year, we are increasing our EPS estimates for ALGT primarily due to stronger unit revenue growth and lower costs. We are raising our 1Q14 EPS, but lowering our 2Q14 EPS slightly due to the push out of some costs from 1Q to 2Q. As such, we are increasing our 2014E EPS from $5.45 to $5.55 (+15% y/y) and our 2015E EPS from $6.55 to $6.65 (+20% y/y). "Allegiant's earnings momentum is anticipated to build strongly beginning in 2Q14. EPS should be up 18% y/y due to the winding down of costs related to the introduction of A320s into the fleet, along with the favorable y/y Easter comparison. This should be followed by gains of 37% in 3Q and 33% in 4Q. As a result of the anticipated strong earnings momentum, we reiterate our Outperform rating on ALGT and are increasing our target price from $118 to $120.” Allegiant Travel Company closed on Friday at $109.29.