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Goldman Sachs Upgrades JetBlue Airways (JBLU) to Neutral

April 7, 2014 6:47 AM EDT
Get Alerts JBLU Hot Sheet
Price: $7.42 +0.13%

Rating Summary:
    5 Buy, 16 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Goldman Sachs upgraded JetBlue Airways (NASDAQ: JBLU) from Sell to Neutral with a price target of $10.50 (from $8.20) citing leverage to improving domestic pricing.

Analyst Tom Kim said, "We upgrade JBLU stock to Neutral from Sell because we think the company should benefit from stronger pricing momentum that we anticipate going forward, due to persistently tight capacity and limited disruptive threats over the near-term (say six months). We increase our 2014-16E PRASM estimates by an average 1.5%, which lifts our earnings estimates by 8.0%, given the operating leverage to improved pricing. In our view, this bodes well for JBLU, as it generates a significant portion of its revenue within the US (75% of passenger revenue in 2013)."

The firm raised FY 2014 EPS from $0.69 to $0.70, FY 2015 EPS from $0.76 to $0.83 and FY 2016 EPS from $0.82 to $0.92.

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 $8.76 yesterday.



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