Allegiant Air Stock Analysis 2016 - Investment Thesis

Allegiant Air stock declined from $232.87 to $132.07 between August 2015 and September 2016, primarily due to fleet replacement costs and hiring expenses. The analysis recommends a buy position, arguing that temporary operational costs from modernizing the aircraft fleet with new Airbus planes present a buying opportunity. Expected future profitability gains and expansion into mid-size markets support the bullish thesis.