Citi still sees 50/50 chance of JetBlue acquiring Spirit Airlines

Citi lowered the firm’s price target on Spirit Airlines (SAVE) to $17 from $19.50 and keeps a Neutral rating on the shares. The analyst also opened a “90-day negative catalyst watch” on the shares. JetBlue’s (JBLU) “surprise decision” to forgo appealing its Northeast Alliance does not seem to be the end of its effort to acquire Spirit Airlines, but looks more like management digging in on this acquisition effort, the analyst tells investors in a research note. The court proceedings around the Department of Justice’s lawsuit to block the merger does not get underway until mid-October, and Citi still sees a 50/50 chance of JetBlue acquiring Spirit. In the meantime, Spirit’s operations “could have a bumpy ride over the coming months,” the firm contends.