In a report released today, Helane Becker from TD Cowen maintained a Hold rating on JetBlue Airways (JBLU – Research Report), with a price target of $5.00.
Helane Becker has given her Hold rating due to a combination of factors that influence the financial health and strategic direction of JetBlue Airways. Her assessment is grounded in the airline’s current efforts to realign its focus on core markets such as New York, Boston, and Fort Lauderdale, in addition to the Caribbean VFR (Visiting Friends and Relatives) markets, post the unsuccessful merger attempt that was halted by the DOJ. The company’s performance and strategic pivots are pivotal in this evaluation.
Becker’s analysis also takes into account JetBlue’s financial projections, which suggest that the airline will continue to face profitability challenges in the upcoming year. The forecasted continuation of unprofitability into 2024, coupled with the impact of past operational and strategic difficulties, has contributed to investor concerns regarding the company’s strained balance sheet. Consequently, these factors justify the Market Perform rating and the price target of $5/share, which is approximately 4.5 times the 2025 estimated EV/EBITDAR. Becker’s Hold rating reflects a cautious view of JetBlue’s near-term prospects amidst these ongoing challenges.
Becker covers the Industrials sector, focusing on stocks such as Delta Air Lines, Alaska Air, and FedEx. According to TipRanks, Becker has an average return of 11.3% and a 63.04% success rate on recommended stocks.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
JetBlue Airways (JBLU) Company Description:
JetBlue Airways Corp. provides air transportation services. It carries more than 30 million customers a year to 86 cities in the U.S., Caribbean, and Latin America with an average of 850 daily flights. The company offers flights and tickets to more than 82 destinations, with accommodations such as free TV, free snacks, and most legroom. JetBlue Airways was founded by David Gary Neeleman in August, 1998 and is headquartered in Long Island City, NY.
Read More on JBLU:
