Imperial Capital Starts JetBlue Airways (JBLU) at Outperform
- Health, energy stocks hit Wall St, Microsoft lifts Nasdaq
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
- General Electric (GE) Tops Q3 EPS by 2c; Updates FY16 EPS Outlook
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Imperial Capital initiates coverage on JetBlue Airways (NASDAQ: JBLU) with a Outperform rating and a price target of $21.00, suggesting ~20% upside.
Analyst Michael Derchin commented, "JBLU's stock has lost about a third of its value over the past twelve months, reflecting concerns regarding the potential impact of economic weakness and the Zika virus on travel to Puerto Rico, a core market, and increasing competition in Boston and other key markets, in our view. With the stock trading at 3.7x estimated 2016 TEV/EBITDAR, we believe that Zika concerns are fully priced into the shares, and JBLU can hold its own in competitive battles. JBLU is well positioned competitively, in our view, with the expansion of its popular Mint product to more long-haul markets, including Boston, brand loyalty, and differentiated product. JBLU has been increasing the size of its transcontinental Mint service which now represents roughly one-third of its capacity, up from 20% prior to Mint’s introduction. Florida, a long time core operation, represents about one-third of its capacity, with Fort Lauderdale a strong focus city. JBLU has been downsizing its Caribbean and Latin America capacity, which is now roughly one third of its system, particularly to Puerto Rico and Columbia. While the impact of Zika on bookings is unknown, we expect some passengers to rebook flights to other destinations on JBLU rather than cancel vacation plans entirely, as most leisure travelers purchase tickets well in advance."
Shares of JetBlue Airways closed at $17.53 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Starts Xenon Pharmaceuticals (XENE) at Buy
- Jefferies Cuts Price Target on Boston Beer Co. (SAM) to $140 Following Weak 3Q
- PayPal (PYPL) PT Raised to $45 at Oppenheimer
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesImperial Capital
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!