Credit Suisse Downgrades Spirit Airlines (SAVE) to Neutral

Credit Suisse downgraded Spirit Airlines (NASDAQ: SAVE) from Outperform to Neutral with a price target of $69.00 (from $75.00) on near term headwinds.

Analyst Julie Yates commented, "While we continue to view SAVE as one of the best long-term, secular growth stories in the domestic airline sector, with a widening cost advantage and solid balance sheet, we are stepping to the sidelines ahead of Q2 following more aggressive competitor fare actions and risk to margin guidance. Fare compression, which mgmt warned investors of back in December, has spread beyond Dallas and SAVE seems to be a direct target of AAL's more aggressive revenue management."

Further, Yates said the consensus is too high and they are 12% below Q2 consensus and 7% / 11.5% below for '15 / '16.

The firm lowered '15 / '16E EPS estimates to $4.51 / $4.83 from $4.63 / $5.16.

For an analyst ratings summary and ratings history on Spirit Airlines click here. For more ratings news on Spirit Airlines click here.

Shares of Spirit Airlines closed at $62.42 yesterday.

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