UPDATE: JetBlue Airways (JBLU) PT Lowered to $20 at Stifel, Following Weak CASM Guidance

July 27, 2021 3:58 PM EDT
Get Alerts JBLU Hot Sheet
Price: $15.22 --0%

Rating Summary:
    13 Buy, 12 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 3 | New: 10
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.
(Updated - July 28, 2021 7:29 AM EDT)

Stifel analyst Joseph W. DeNardi lowered the price target on JetBlue Airways (NASDAQ: JBLU) to $20.00 (from $21.00) after the company reported adjusted 2Q EPS of -$0.65, four cents ahead of expectations on tailwinds from the renewed co-brand agreement with Barclays/Mastercard (1.5pts of revenue for 2Q, 1pt of revenue/margins for FY). Revenue guidance of down 4-9% vs. 2019 was better than expectations of down ~18% and is better than Alaska (-17-20%) and Southwest (-10-15%
July; -12-17% August). The difference is likely attributable to a combination of capacity nearing
flat to 2019 (inline with Southwest but well ahead of Alaska) and greater exposure to Latin/
Caribbean leisure markets.

The key concern for the quarter was CASMx guidance of +11-13% (3Q) and low-single digits (FY22)
vs. 2019 was materially worse than expectation for ~+4% and flattish, respectively, on
short-term headwinds from rents/landing fees/labor/maintenance/NE Alliance and longer-term
pressures from delayed E190 retirements/NE Alliance investments. the analyst maintained a a Hold rating, stating "This is challenging JetBlue's ability to return to positive EPS in the near term and is overshadowing the revenue recovery, in our view".



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS View, Analyst PT Change

Related Entities

Stifel, Barclays, Earnings