BofA raised the firm’s price target on JetBlue (JBLU) to $3.50 from $3 and keeps an Underperform rating on the shares after the company reported Q2 results and guided Q3 revenues ahead of the firm’s expectations. The firm rolls forward its valuation methodology to 2026, driving its price target increase, but notes that some of the positive EPS revisions come from gains on the sale of planes/engines, which it does not view as sustainable. The firm continues to see an environment where JetBlue’s unit cost growth exceeds unit revenue growth this year, the analyst added.
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Read More on JBLU:
- JetBlue Airways Reports Modest Q2 Profit Amid Strategic Gains
- JetBlue: Q3 view assumes more typical operating environment for August, Sept.
- JetBlue sees similar demand environment in Q3 vs. Q2
- JetBlue says not providing revenue guidance beyond Q3
- JetBlue: Aircraft on ground forecast due to P&W GTF issue ‘has improved’