2024-05-08 14:10:00 ET
Miserable news this week for investors in Spirit Airlines (NYSE: SAVE) stock: On Monday, Spirit reported losing $1.46 per share in Q1, adjusted for one-time items -- only a penny worse than Wall Street analysts had predicted it would lose, but still a big loss. No sooner had this news been revealed than TD Cowen analyst Helane Becker cut her price target on Spirit stock from $4 a share to just $3.
Becker maintained a "hold" rating on the stock, but seeing as her price target implies Spirit stock will lose another 10% over the next 12 months, perhaps investors would be better off just selling the stock ?
Describing the price target cut , Becker explained that Spirit's Q1 loss was already expected. What was not expected was that management would forecast weak revenue of only about $1.3 billion in Q2 as well -- almost as bad as Q1.
For further details see:
1 Wall Street Analyst Cuts Spirit Airlines' Price Target by 25%. Here's Why He's Right.