1 Wall Street Analyst Thinks Spirit Airlines Stock Is Going to $4. Is It a Sell?
A analyst recently reinstated coverage of Spirit Airlines (NYSE: SAVE) and slapped a $4 price target on it with an "underweight" rating. To put that figure into perspective, it was more than 17% lower than the share price at the time of writing.
The analyst referred to the company's headwinds in 2024, and it's hard to disagree. Now that the merger with JetBlue is off the table, Spirit must deal with its issues alone. They are not insubstantial.
The airline is one of many that have racked up debt due to pandemic-related pressures that have severely damaged the travel sector and airline industry. Its history of cash outflows and weak profitability means investors aren't confident that Spirit will cut its debt burden in due course.
Source Fool.com
