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Oct. 28, 2019, 8:36 a.m. EDT

JetBlue's stock rallies after J.P. Morgan upgrades, lifts price target

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By Tomi Kilgore

Shares of JetBlue Airways Corp. /zigman2/quotes/207639051/composite JBLU -8.38% rallied 2.0% in premarket trading Monday, after analyst Jamie Baker at J.P. Morgan turned bullish on the air carrier, citing a more upbeat earnings outlook despite a downbeat Street view. Baker raised his rating to overweight from neutral, and lifted his stock price target to $24 from $23. He expects 2020 earnings per share of $2.67, within JetBlue's guidance range of $2.50 to $3.00 while the FactSet EPS consensus is below the range at $2.40, citing the upbeat metrics of 2.3% growth in total revenue per available seat mile and the 0.7% decline in costs per available seat mile, excluding fuel. "Of the aforementioned drivers, we have the most confidence in the ex-fuel CASM outcome, which is a sharp reversal from how we've viewed the company over the years," Baker wrote in a note to clients. "And [JetBlue] is far from an analyst favorite, as evidenced by the highest [percent] of 'sells' in our universe (and the second-fewest 'buys' after [Spirit Airlines Inc.])." Separately, Baker downgraded Alaska Air Group Inc. /zigman2/quotes/200972303/composite ALK -6.29% to neutral from overweight, citing valuation concerns. Alaska Air's stock slumped 2.5% ahead of the open. JetBlue shares have rallied 16.8% year to date through Friday and Alaska Air's stock has climbed 17.6%, while the NYSE Arca Airline Index /zigman2/quotes/210598447/delayed XX:XAL -7.26% has hiked up 18.0% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -3.10% has gained 20.6%.

/zigman2/quotes/207639051/composite
US : U.S.: Nasdaq
$ 8.20
-0.75 -8.38%
Volume: 2.44M
April 1, 2020 10:12a
P/E Ratio
4.24
Dividend Yield
N/A
Market Cap
$2.53 billion
Rev. per Employee
N/A
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/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 26.68
-1.79 -6.29%
Volume: 377,299
April 1, 2020 10:12a
P/E Ratio
4.31
Dividend Yield
5.63%
Market Cap
$3.49 billion
Rev. per Employee
$353,525
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/zigman2/quotes/210598447/delayed
XX : ICE Gib Ind
41.97
-3.29 -7.26%
Volume: 0.00
April 1, 2020 9:57a
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/zigman2/quotes/210599714/realtime
US : S&P US
2,504.45
-80.14 -3.10%
Volume: 579.72M
April 1, 2020 10:12a
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