Spirit Airlines, Inc. (NYSE:SAVE) Given Average Rating of “Reduce” by Analysts

Spirit Airlines, Inc. is a low-cost airline based in Miramar Beach, Florida, United States. The company operates over 300 daily flights to more than 60 destinations throughout North America. As of March 2021, the average rating of Spirit Airlines by analysts is "Reduce," indicating that they believe the stock is undervalued and has potential for growth.

There are several factors that may be contributing to this rating. One factor is the company's strong financial performance. In its most recent quarter, Spirit reported earnings per share of $0.49, which exceeded analysts' expectations by 12 cents. The company also generated revenue of $1.3 billion, a 6% increase from the same period last year.

Another factor that may be driving the "Reduce" rating is the company's growth potential. Spirit has been expanding its route network and adding new aircraft to its fleet in recent years. The company currently operates over 100 Boeing 737 MAX aircraft, with plans to add more in the future. This growth is expected to continue as the airline industry recovers from the COVID-19 pandemic.

Despite these positive factors, there are also some risks and challenges that could impact Spirit's performance. One risk is the ongoing pandemic, which has caused a significant decline in air travel demand. The company has had to cut its flight schedule and implement cost-cutting measures to stay afloat during this time. Additionally, there are concerns about the safety of the Boeing 737 MAX aircraft, which has been involved in several high-profile crashes in recent years.

Overall, while there are both risks and opportunities for Spirit Airlines, the "Reduce" rating suggests that analysts believe the stock is undervalued and has potential for growth.