Spirit Airlines Inc. (SAVE) was downgraded by Raymond James analyst Savanthi Syth, who said that while she believes the discount air carrier is set up well in the current environment, given its low-cost structure, she sees "more compelling risk-reward elsewhere." Syth cut her rating to market perform, after being at outperform since September 2019, and at strong buy before that since at least June 2017. Meanwhile, the stock rose 2.0% in premarket trading, after tumbling 7.3% on Tuesday in the wake of downbeat comments about the industry ( ) from Boeing Co. (BA) Chief Executive David Calhoun. "We continue to expect a slightly slower earnings recovery at Spirit relative to other domestic peers due to its role as a 'spill' airline and still believe, in contrast to some investors, that Spirit will be able to maintain its cost advantage even if it has to pair back operations," Syth wrote in a note to clients. The stock has tumbled 78.8% over the past three months through Tuesday, while the U.S. Global Jets ETF (JETS) has tumbled 60.0% and the S&P 500 has lost 14.9%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 13, 2020 08:45 ET (12:45 GMT)
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