Credit Suisse Downgrades Spirit Airlines Incorporated Ahead of Q2
Credit Suisse analyst Julie Yates downgraded shares of Spirit Airlines Incorporated (NASDAQ:SAVE) to Neutral and slashed the price target to $69 (from $75) ahead of the second quarter. Shares of SAVE closed yesterday at $62.42, down $0.34, or 0.54%.
Yates commented, “While we continue to view SAVE as one of the best long-term, secular growth stories in the domestic airline sector, with a widening cost advantage and solid balance sheet, we are stepping to the sidelines ahead of Q2 following more aggressive competitor fare actions and risk to margin guidance.”
Furthermore, “Fare compression, which mgmt warned investors of back in December, has spread beyond Dallas and SAVE seems to be a direct target of AAL’s more aggressive revenue management.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Julie Yates has a total average return of 2.9% and a 42.3% success rate. Yates has a -21.3% average return when recommending SAVE, and is ranked #1853 out of 3632 analysts.