Market Overview

Buckingham Anticipates Takeoff In Spirit Airlines Shares

Buckingham Anticipates Takeoff In Spirit Airlines Shares
Related SAVE
Spirit Airlines Could Continue To Fly High In 2019, Raymond James Says
Imperial Downgrades Delta And United Continental, Sees Clear Skies For Most Other US Airline Stocks
Moody's issues stable outlook on global airline industry (Seeking Alpha)

Spirit Airlines Incorporated (NYSE: SAVE) picked up a sell-side bull in Buckingham Research Group Wednesday. 

The Analyst

Buckingham Research Group's Daniel McKenzie upgraded Spirit Airlines from Neutral to Buy and lifted the price target from $42 to $52.

The Thesis

“We have increased comfort with margin execution, aided in part by easing competition and slower growth, which in turn should drive better sentiment and a modest re-rating of the stock, which is the basis for our improved valuation,” McKenzie said in the Wednesday upgrade note. (See the analyst's track record here.) 

Both non-fuel cost performance and an improved supply and demand element in key markets underpin Buckingham's optimistic projections for Spirit, the analyst said. 

The better cost performance should be sustainable, as seen in a new pilot deal and other recent business endeavors, according to Buckingham. 

McKenzie’s new price target comes after a 15-percent pop in share price and Spirit's positioning to execute on pretax earnings growth, he said. 

The Buckingham analyst addressed trade concerns in the note. Investors seeking exposure to airlines will likely select carriers with largely domestic exposure, McKenzie said.

"Just 10 percent of SAVE's flying is international," the analyst said. 

Price Action

Spirit shares were up 0.57 percent at $40.80 at the time of publication Wednesday. 

Related Links:

Barron's Picks And Pans: General Motors, Spirit Airlines And More

Most Airlines Are Cleared For Takeoff, But Spirit May Stay Grounded

Photo by WestportWiki/Wikimedia. 

Latest Ratings for SAVE

Jan 2019Cowen & Co.UpgradesMarket PerformOutperform
Dec 2018Credit SuisseUpgradesNeutralOutperform
Dec 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for SAVE
View the Latest Analyst Ratings

Posted-In: airlines Buckingham Research GroupAnalyst Color Upgrades Price Target Travel Analyst Ratings General Best of Benzinga


Related Articles (SAVE)

View Comments and Join the Discussion!

Latest Ratings

ADNTRBC CapitalDowngrades16.0
DLPHRBC CapitalDowngrades17.0
MTORRBC CapitalDowngrades19.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Philip Morris' Cigarette Business Remains Strong, Argus Says In Upgrade

Cramer: The Market Is Being An 'Extremist'