Skip to main content

Market Overview

5 Reasons To Invest In Spirit Airlines Stock

5 Reasons To Invest In Spirit Airlines Stock

Investors in Spirit Airlines Incorporated (NYSE: SAVE) are awaiting fourth-quarter results from the airline in early February. 

Ahead of the earnings report, here's a look at a few top reasons two analysts are bullish on the stock:

  • Although the company is sizable, it still has a lot of potential for growth. Historically, the larger a company gets, the slower it grows. The company expects to grow 17-19% in just in 2020 alone.
  • It has no exposure to the 737 Max grounding. A lot of other airlines bought a fleet of Boeing Co (NYSE: BA)'s grounded 737 Max, including American Airlines Group Inc (NASDAQ: AAL) and Southwest Airlines Co (NYSE: LUV), which impacted their profits. 
  • Future M&A is likely. A potential merger with Frontier Airlines could happen, according to Buckingham analyst Daniel McKenzie.
  • While nothing is imminent, the two teamed up, the combined company would be a formidable competitor, the analyst said. 
  • Loyalty is everything. The company is rolling out a new loyalty program that will hopefully bring in more repeat customers.
  • The cost performance of the airline is improving. The trend in revenue per available seat mile minus cost per available seat mile excluding fuel is coming in stronger than anticipated, according to Citigroup analyst Stephen Trent, meaning profit efficiency is improving.

Spirit shares were trading 7.7% higher at $42.74 at the time of publication Thursday. 

Benzinga file photo by Dustin Blitchok. 

Latest Ratings for SAVE

Feb 2021Deutsche BankUpgradesHoldBuy
Feb 2021Credit SuisseMaintainsUnderperform
Feb 2021Seaport GlobalDowngradesBuyNeutral

View More Analyst Ratings for SAVE
View the Latest Analyst Ratings


Related Articles (SAVE)

View Comments and Join the Discussion!

Posted-In: Buckingham Citigroup Daniel McKenzieNews Education Travel Analyst Ratings General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at