Spirit Airlines (NYSE:SAVE) tanked in trading after JetBlue Airways (NASDAQ:JBLU) warned in a company filing that certain conditions to close the merger may not be met before the merger’s termination date on January 28. As a result, the acquisition may terminate on or after January 28.
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JetBlue stated that the company is evaluating its options under the merger agreement. This is another major setback for Spirit Airlines after a U.S. judge recently decided to block the merger.
Following the decision of the U.S. Court, the two companies filed a joint appeal to the U.S. Court of Appeals. At the same time, SAVE issued an upbeat preliminary earnings update, while JetBlue cut several of its routes as it looks for a return to profitability.
Shares of SAVE have been on a see-saw following the flurry of news about the merger, but overall, for the past five trading sessions, shares have plunged by more than 15%.
Is SAVE a Buy or Sell?
Analysts remain bearish about SAVE stock with a Moderate Sell consensus rating based on three Holds and four Sells. The average SAVE price target of $7.33 implies an upside potential of 22.4% at current levels.
