Unveiling 6 Analyst Insights On Spirit Airlines

Analysts' ratings for Spirit Airlines SAVE over the last quarter vary from bullish to bearish, as provided by 6 analysts.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $3.92, a high estimate of $4.00, and a low estimate of $3.50. Highlighting a 56.4% decrease, the current average has fallen from the previous average price target of $8.99.

Interpreting Analyst Ratings: A Closer Look

The perception of Spirit Airlines by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Spirit Airlines. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Spirit Airlines compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Spirit Airlines's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Spirit Airlines's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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About Spirit Airlines

Spirit Airlines Inc serves the United States, Latin America, and Caribbean as an airline operator. It primarily offers customers unbundled base fares to strip out any unneeded travel amenities. If needed, a customer can elect for additional options at an extra charge. Flight crews are entirely interchangeable across all aircraft, and maintenance and other support services are simplified due to not having an overly complex fleet. The company has one operating segment, air transportation, owing to its system wide route structure. It may decide to expand its network if a market is underserved or overpriced. The majority of revenue is derived from the United States.

Key Indicators: Spirit Airlines's Financial Health

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Spirit Airlines's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -5.0%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -13.89%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -14.99%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Spirit Airlines's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.96%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Spirit Airlines's debt-to-equity ratio stands notably higher than the industry average, reaching 6.11. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.