Soleil Raises Estimates on JetBlue Airways (JBLU), Demand Continues to Increase Ahead of Expectations

June 13, 2011 11:59 AM EDT
Get Alerts JBLU Hot Sheet
Price: $21.49 --0%

Rating Summary:
    10 Buy, 12 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 31 | New: 34
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Soleil Securities is reiterating its Buy rating on shares of JetBlue Airways (NASDAQ: JBLU) as its $9 price target calls for 60 percent upside to the stocks current price.

Due to strong May RASM results of 19 percent, versus the fires estimate of 13 percent, and the company's Q2 RASM guidance of 13-15 percent, the firm is raising its 2011 EPS estimate from $0.41 to $0.46 and its 2012 estimate from $0.71 to $0.73. The firm notes that its Q2 RASM guidance hints that there is no need to revise its June estimate.

Soleil's 2011 estimate factors in free cash flow per share of more than $0.45. Other airline company's have stronger FCF yields, but none are in the targeted growth mode taking advantage of competitors' substantial capacity reductions that JBLU is.

An analyst at Soleil comments, "we view JBLU as perhaps the most misunderstood airline stock in a group we see as generally underappreciated by investors. Targeted growth that is building out business travel-rich Boston and selectively adding Caribbean and near-Latin American destinations as other airlines reduce capacity; improving business travel mix; and growing volumes from primarily international partner airlines round out the reasons for our enthusiasm for JBLU shares."

For more ratings news on JetBlue Airways click here and for the rating history of JetBlue Airways click here.

Shares of JetBlue Airways closed at $5.61 yesterday.

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