economy
Goldman Sachs is betting that a recent merger will drive sharp gains for this travel stock
The bank this week upgraded the airline to buy from neutral.
TL;DR
- Goldman Sachs upgraded Allegiant Travel to buy from neutral with a $125 price target.
- Allegiant's acquisition of Sun Country Airlines is expected to create a more differentiated and durable airline.
- The combined fleet of 195 aircraft will allow for more efficient aircraft utilization and a larger network.
- The closure of Sun Country gives Allegiant more pricing power.
- Allegiant has a unique fuel hedge to counter volatile jet fuel prices.