Morgan Stanley Reiterates Equalweight Rating on JetBlue Airways (JBLU) Amid United Collaboration

Morgan Stanley analyst Ravi Shanker reiterated an Equalweight rating and a $8.00 price target on JetBlue Airways (NASDAQ: JBLU) following the announcement of a collaboration between the company and United (NASDAQ: UAL), dubbed Blue Sky, that links loyalty programs.

The analyst commented, "We expect the UAL-JBLU partnership announcement to be well received by investors today, even if it was largely expected. In addition to removing any small headline risk of a negative surprise (like a merger instead of a partnership), the deal is beneficial to both sides, though we expect it will make a bigger difference to JBLU. We would be surprised if this partnership ran into the same regulatory challenges as the NEA as we expect both sides would have closely studied the previous case for potential hurdles. While not transformative, we believe both sides stand to incrementally benefit over time though the market will remain focused on near-term macro trends for now. "

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 $5.22 yesterday.

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