UPDATE: JPMorgan Upgrades Spirit Airlines (SAVE) to Overweight
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JPMorgan analyst Jamie Baker upgraded Spirit Airlines (NYSE: SAVE) from Underweight to Overweight with a price target of $54.00 (from $31.00).
The analyst comments "Spirit’s business model entered a maturation phase in 2018, with a new pilot contract, more disciplined growth, and better commercial execution related to market selection and yield management. The COVID-19 pandemic has materially impacted the company’s profitability alongside the industry broadly. However, our Overweight rating at Spirit reflects our view that there is material upside relative to our price target. Given significant forecasted losses this year and diminished profit expectations for next, we believe EV/EBITDAR will return as a valuation tool for investors. When taken in conjunction with our revised debt-raising expectations, not all airline balance sheets are expected to exit the current downturn looking alike."
Shares of Spirit Airlines closed at $37.04 yesterday.
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