- Imperial Capital issues a very positive outlook on Spirit Airlines (NASDAQ:SAVE) as it initiates shares with an Outperform rating and assigns a price target of $51 (21.8% upside).
- The investment firm thinks the airline stock has been held back due to the intense focus on fare wars in key markets.
- IC on Spirit: "Concerns about SAVE's competitive position are over-done, in our view, as evidenced by its superior pretax margins despite increased competition. In fact, we believe SAVE’s recent competitive experience is not dissimilar to those faced by LUV and Ryanair (NASDAQ:RYAAY) during the early stages of their growth plans, which turned out to be tremendous buying opportunities at the time."