UPDATE: Dahlman Rose Reiterates Buy Rating, Lowers PT on Spirit Airlines Incorporated

In a report published Friday, Dahlman Rose & Co. reiterated its Buy rating on Spirit Airlines Incorporated (NASDAQ: SAVE), but lowered its price target from $27.00 to $23.00.

Dahlman Rose noted, “Last year, Spirit reported total unit revenues increased 28.4%, due in part to the company seeing a sharp increase in demand related to its decision to pass the federal excise tax holiday on to its customers with lower ticket prices. As a result, the company's fares were significantly below the peer group, and Spirit saw strong bookings into September 2011. Owing to the difficult y/y comparison from this onetime event, as well as from last year's Hurricane Irene, which was in late August and had a positive impact on revenues, management indicated total unit revenues will decline 2.5%, to 4.5% in 3Q12, compared to our prior estimate of an increase of 4%.”

Spirit Airlines Incorporated closed on Thursday at $19.66.