Analyst Andrew Didora from Bank of America Securities reiterated a Sell rating on JetBlue Airways and increased the price target to $3.50 from $3.00.
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Andrew Didora has given his Sell rating due to a combination of factors impacting JetBlue Airways. Despite an improvement in revenue driven by better close-in bookings, Didora notes that some of the positive earnings per share revisions are attributed to non-recurring gains from the sale of planes and engines, which he does not consider sustainable. Furthermore, there is a concern that JetBlue’s unit cost growth will continue to outpace unit revenue growth throughout the year, posing a challenge to profitability.
Additionally, while JetBlue’s unit costs showed some improvement, this was partly due to gains from asset sales, and the true test of cost management will be in 2026 when fleet utilization normalizes. Although the Blue Sky partnership with United Airlines is expected to contribute to earnings, the full benefits are not anticipated until 2028. These factors, combined with a cautious outlook on cost management and revenue sustainability, underpin Didora’s Sell rating and the price objective of $3.50.
Didora covers the Industrials sector, focusing on stocks such as Allegiant Travel Company, Delta Air Lines, and Alaska Air. According to TipRanks, Didora has an average return of 2.9% and a 57.33% success rate on recommended stocks.