Did Spirit Airlines and American Airlines Deserve Monday's Analyst Downgrades?
Shares of Spirit Airlines (NYSE: SAVE) and American Airlines (NASDAQ: AAL) moved lower on Monday after getting negative reviews from Wall Street analysts. Andrew Didora of Bank of America downgraded shares of both airlines due to his projection that industry unit revenue trends are poised to deteriorate. To add insult to injury, Spirit Airlines stock was also downgraded by analyst Jack Atkins of Stephens.
Spirit Airlines and American Airlines have certainly faced plenty of setbacks this year. And while American Airlines isn't doomed, it's reasonable for analysts to take a cautious attitude toward the company. By contrast, Spirit Airlines' troubles are not as bad as they seem.
Spirit Airlines is not in as much trouble as it may appear. Image source: Spirit Airlines.
Source Fool.com
