UPDATE: JPMorgan Upgrades JetBlue Airways (JBLU) to Overweight
- Dow ends at record high after upbeat jobless claims report
- PayPal (PYPL) Gains After Topping Q1 and Guidance Expectations, Crypto Seen as a Key Growth Driver Going Forward
- Square (SQ) Tops Q1 EPS by 25c
- Fed's Kaplan wants taper talk 'sooner rather than later'
- U.S. weekly jobless claims drop below 500,000; layoffs lowest since 2000
JPMorgan analyst Jamie Baker upgraded JetBlue Airways (NASDAQ: JBLU) from Underweight to Overweight with a price target of $25.00 (from $15.00).
The analyst comments "Prior to COVID-19, JetBlue disclosed an ambitious set of goals at its 2018 investor day, namely that the company is targeting $2.50-3.00 of EPS by 2020, close to an 80% increase at the midpoint from 2018 EPS. While we are no longer modeling for such an outcome, we continue to believe that the company’s cost control will continue to be in focus following the impact of COVID-19. Our Overweight rating reflects a positive risk/reward profile relative to current valuations. Given significant forecasted losses this year and diminished profit expectations for next, we believe EV/EBITDAR will return as a valuation tool for investors. When taken in conjunction with our revised debt-raising expectations, not all airline balance sheets are expected to exit the current downturn looking alike."
Shares of JetBlue Airways closed at $20.77 yesterday.
You May Also Be Interested In
- Stifel Upgrades Wayfair (W) to Hold
- Mintree Ltd (MTCL:IN) PT Raised to INR1,965 at HSBC
- L&T Infotech (LTI:IN) PT Raised to INR4,325 at HSBC
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Comments, Hot Upgrades, Upgrades
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!