01:00 AM EDT, 05/08/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $16 to $60, 10.3x our 2025 EPS estimate (cut by $1.31 to $5.80; 2024's cut by $3.60 to $3.20), a discount to ALGT's five-year historical average. We think a discount is merited due to ongoing issues with Boeing (BA 177 **), causing further delays in new aircraft deliveries (ALGT expects to receive 50 737 MAX series aircraft between 2024 and 2025; however, we think deliveries could be pushed back further due to regulatory concerns), which could impact ALGT's capacity growth plans and keep unit costs elevated, in our view. Q1 EPS of $0.57 vs. $3.04, beat consensus by $0.12. Q1 passenger revenues fell 4.8% Y/Y due to a 5% decline in pricing, while capacity grew 2%. ALGT's advanced ticket sales were down ~10% Y/Y, leading us to believe that domestic leisure travel demand could be weaker than previously expected, given that U.S. consumers have exhausted their savings, which could impact ALGT's 2024 earnings potential as we enter peak travel season, in our view. Shares yield 4.5%.