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

Deutsche Bank raised its rating on Allegiant Travel Company

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.