UPDATE: Morgan Stanley Reiterates On Spirit Airlines On Revised Estimates

In a report published Wednesday, Morgan Stanley analyst John D. Godyn reiterated an Overweight rating on

, and raised the price target from $72.00 to $77.00. In the report, Morgan Stanley noted, “Consistent with our recent preview, SAVE revised guidance and beat both its prior guidance as well as consensus. Notably – SAVE exceeded even our bullish stance issuing new 2Q14 op. margin guidance of ~ 21% vs. our 18.5% estimate, which was already at the high end of prior guidance. The beat was driven by both TRASM and CASM ex-Fuel strength though we suspect only ~1pt of the 2.5pt CASM ex-Fuel beat is due to core operations. Even so, rolling this forward alongside continued revenue strength suggests mgmt's new FY14 op. margin guidance of ~18% is highly conservative.” Spirit Airlines closed on Tuesday at $65.69.