Why This Spirit Airlines Analyst Is Turning Bearish

While shares of Spirit Airlines Inc. SAVE significantly outperformed the sector after the JetBlue Airways Corporation JBLU merger announcement, there is likely to be little progress on the regulatory front until at least the first quarter of next year, according to JPMorgan Chase & Co. JPM.

The Spirit Airlines Analyst: Jamie Baker downgraded the rating for Spirit Airlines from Overweight to Underweight, while reducing the price target from $30 to $29.

The Spirit Airlines Thesis: Since the time of the announcement by Frontier Group Holdings Inc. ULCC, shares of Spirit Airlines have surged 18%, versus “a 16% market-weighted correction in non-deal names and 10% correction in the SPX,” Baker said in the downgrade note.

Check out other analyst stock ratings.

“Given the lengthy runway between today and potential regulatory clarity, we believe SAVE shares may continue to buck fundamental trends,” the analyst wrote. Citing the “tumultuous nature of trading airline stocks,” he recommended investors to take profits.

SAVE Price Action: Shares of Spirit Airlines had declined by 2.03% to $25.14 at the time of publication Friday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorM&ANewsDowngradesPrice TargetTravelAnalyst RatingsGeneralJamie BakerJPMorgan
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!