Imperial Capital Raises Price Target on Spirit Airlines (SAVE); Cuts 4Q Estimates

Imperial Capital reiterated an Outperform rating on Spirit Airlines (NASDAQ: SAVE), and raised the price target to $58.00 (from $51.00), following the company's 3Q earnings report. Imperial raised FY16 EPS estimates to $3.98 from $3.89 on better-than-expected 3Q16 earnings of $1.24 versus $1.08 estimate. 4Q16 EPS estimates were cut to $0.64 from $0.70 on higher fuel prices and $6.5mn pre-tax profit impact from Hurricane Matthew offsetting better than expected RASM.

Analyst Michael Derchin commented, "We are maintaining our Outperform rating and raising our estimates and one-year price target on SAVE shares to $58 from $51 on higher valuations due to improving unit revenue trends. Management is proving to be flexible and nimble in adjusting the already successful business model, in our opinion, such as implementing $5 surcharges per one-way trip during peak demand periods. Our price target is about 24% above the recent share price."

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 $48.66 yesterday.

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