Citi opens ‘negative catalyst watch’ on Spirit Airlines

Citi opened a “90-day negative catalyst watch” on shares of Spirit Airlines while keeping a Neutral rating on the name with a $17 price target. The company’s NEO engine challenges, significant exposure to markets with difficult leisure comps, such as Florida, and its lack of offsetting long-haul exposure should pressure earnings, the analyst tells investors in a research note. The firm believes Spirit’s Q4 earning are risk, not only from the above factors, but also as the carrier’s pilots’ deal amplifies seat mile cost pressure.