11:20 AM EDT, 05/06/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $3, down $2, reflects a 3.7x multiple of EV to projected '25 EBITDA, a discount to SAVE's historical average. We think that a discount is merited due to SAVE reducing the number of new aircraft deliveries in '25 (four planes vs. the prior 20), causing it to fly much older aircraft that require higher maintenance and are less fuel efficient. SAVE expects 34% of its aircraft to be grounded through '25 (70 planes of its fleet of 207) due to the Pratt & Whitnety engine recall, which could cause unit costs to rise, in our view. We widen our '24 LPS to -$4.07 from -$3.78 and '25's to -$3.57 from -$3.07. Q1 LPS of -$1.46 vs. LPS of -$0.82, missed consensus by -$0.01. Q1 revenues fell 6% Y/Y, while capacity grew 2%. Shares are down ~9% today, as Q2 revenue guidance ($1.32B-$1.34B) is lower than the consensus view ($1.46B), and represents a 7% drop vs. Q2 23 levels, which leads us to think that domestic summer travel demand within ultra-low-cost carriers could be weaker than previously expected.