12:45 PM EDT, 05/15/2024 (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 $3.50, up $0.50, reflects a 4.3x multiple of EV to projected 2025 EBITDA, a discount to SAVE's historical average. We think a discount is merited due to worries surrounding SAVE's ability to repay its 2025 debt obligations. We keep our 2024 LPS view at -$4.07 and 2025's at -$3.57. Shares are +21% in the past five days vs. the peer average (ALGT / ULCC) of +6%, as the heavily shorted stock is experiencing a short squeeze, amid meme-driven market volatility. Yet, shares are -9% today, as worries over travel demand rise after today's CPI print shows airfares fell ~6% Y/Y. SAVE expects to ground 70 planes by year-end 2025 due to the Pratt & Whitney engine recall, while reducing its 2025 aircraft deliveries by 80%, causing it to fly much older aircraft that require additional maintenance, which could place upward pressure on unit costs, in our view. Should the demand picture weaken, taking fares along with it, we think SAVE could experience turbulence as it tries to return to profitability.