Spirit Airlines downgraded to Sell from Hold at Deutsche Bank

Deutsche Bank downgraded Spirit Airlines to Sell from Hold with a price target of $2, down from $3. While full service airlines drive industry profits; low fare carriers continue to struggle despite record volumes and demand, the analyst tells investors in a research note. The firm says the majority of the industry’s sales growth and operating profit will be generated by the full service carriers. Moderating economic growth is likely one of the factors impacting low fare carriers, contends Deutsche. It believes airlines which are most exposed to domestic market and price-sensitive customers could be first in line to experience the effects of a slowing economy. It downgrades both Allegiant and Spirit to reflect a reduced earnings outlook.