Goldman Sachs Downgrades JetBlue Airways (JBLU) to Sell, Risks to the Downside

November 16, 2012 6:54 AM EST
Get Alerts JBLU Hot Sheet
Price: $21.76 --0%

Rating Summary:
    10 Buy, 12 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Goldman Sachs downgraded JetBlue Airways (NASDAQ: JBLU) from Neutral to Sell with a price target of $4.50 (from $4.00).

"We downgrade JBLU to Sell from Neutral, as the recent rally in shares has skewed the risks toward the downside," the analyst said. "Shares of JBLU have outperformed our transportation coverage group by 5 ppt and the S&P by 10 ppt since September 28, as jet fuel prices have declined 7% over the same period. However, we believe softening traffic demand trends will more than offset the incremental cost savings."

Goldman cut 4Q12 EPS estimate to $0.03 from $0.05 and reduce 2013 EPS estimate by 8% to $0.55 on lower near-term traffic assumptions. They left 2014 estimate unchanged.

For an analyst ratings summary and ratings history on JetBlue Airways click here. For more ratings news on JetBlue Airways click here.

Shares of JetBlue Airways closed at $4.98 yesterday.

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