Market Overview

Spirit Airlines Could Continue To Fly High In 2019, Raymond James Says

Spirit Airlines Could Continue To Fly High In 2019, Raymond James Says
Related SAVE
5 Reasons Why Goldman Turns Bullish On Spirit Airlines
8 Biggest Price Target Changes For Thursday
Spotlight On Walmart, Samsung And CAGNY (Stocks To Watch Podcast) (Seeking Alpha)

Spirit Airlines Incorporated (NYSE: SAVE) posted a positive investor update for Q4, ahead of its Feb. 6 earnings release. This should ease concerns over a deteriorating industry revenue environment, especially for leisure carriers, according to Raymond James.

The Analyst

Savanthi Syth maintains a Strong Buy rating on Spirit Airlines with an $80 price target.

The Thesis

Spirit Airlines has been recording positive RASM (revenue per available seat mile) growth. For Q4, the company’s RASM is tracking at 11.4 percent year-on-year, which is 40 bps higher than its late November guidance and the Street’s estimate of 11 percent.

Spirit Airlines cited stronger peak yields as the reason for the improved performance. The figure was also driven by the company’s own initiatives and easy comps, Syth said.

The operating EPS estimates for 2018, 2019 and 2020 have been raised from $4.32 to $4.39, from $5.70 to $6.25 and from $6.20 to $6.55, respectively.

Syth added, however, that the company’s RASM could come under pressure in 1Q19 due to the Easter impact and tougher comps. The government shutdown also could create some uncertainty.

“We continue to believe impressive cost discipline, ancillary revenue initiatives, and tactical network adjustments will continue to support earnings recovery at Spirit,” the analyst wrote in the report.

Price Action

Shares of Spirit Airlines traded at $59.64 Thursday afternoon.

Related Links:

Imperial Downgrades Delta And United Continental, Sees Clear Skies For Most Other US Airline Stocks

Spirit Airlines Lifts Q4 Guidance: The Sell-Side Reacts

Latest Ratings for SAVE

Feb 2019Goldman SachsUpgradesNeutralBuy
Jan 2019Cowen & Co.UpgradesMarket PerformOutperform
Dec 2018Credit SuisseUpgradesNeutralOutperform

View More Analyst Ratings for SAVE
View the Latest Analyst Ratings

Posted-In: Raymond James Savanthi SythAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (SAVE)

View Comments and Join the Discussion!

Latest Ratings

CBBMorgan StanleyUpgrades10.0
GDCredit SuisseDowngrades184.0
GEOJP MorganDowngrades26.0
TRUERBC CapitalDowngrades0.0
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.

How Technology Can Help Secure Capacity In A Driver-Constrained Market

4 Cannabis Investors Share Their Predictions For Industry's Future