UPDATE: Deutsche Bank Upgrades Allegiant Travel Company to Buy Following Transition Over Past 18 Months

Deutsche Bank raised its rating on Allegiant Travel Company (NASDAQ: ALGT) from Hold to Buy and increased its price target from $60 to $90. Deutsche Bank noted, "The past 18 months has been a period of transition for ALGT as it inducted a new aircraft type, gained ETOPS approval, commenced service to Hawaii, and increased its MD-80 seating density. ALGT's March Q marked the return of margin expansion; we expect that trend to continue through 2012 and into 2013. Our new 12-month price target of $90 is derived by applying an 18x P/E multiple to our revised 2013 EPS estimate of $5.00 (vs. prior $4.00)."Allegiant Travel Company closed at $$70.44 on Tuesday.