Allegiant Air ALGT 2016 Analyst Report Investment Thesis

Analyst report on Allegiant Air examining the company's stock price decline from August 2015 to September 2016 and its fleet modernization strategy. The analysis recommends the stock as a buy, arguing that temporary expenses from aircraft replacement and expansion into mid-size markets will drive future profitability growth. Allegiant's low-cost business model focuses on underserved leisure destinations with minimal direct airline competition.