Demystifying Spirit Airlines: Insights From 7 Analyst Reviews

Ratings for Spirit Airlines SAVE were provided by 7 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved 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 $3.48, a high estimate of $4.00, and a low estimate of $3.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 18.31%.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Spirit Airlines is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Spirit Airlines. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Spirit Airlines compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Spirit Airlines's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Spirit Airlines's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Delving into Spirit Airlines's Background

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.

Spirit Airlines: Financial Performance Dissected

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 Challenges: Spirit Airlines's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -6.24%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Spirit Airlines's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -11.27%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Spirit Airlines's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -13.35% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Spirit Airlines's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -1.51%, the company showcases efficient use of assets and strong financial health.

Debt Management: Spirit Airlines's debt-to-equity ratio is below the industry average. With a ratio of 7.17, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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