Given the problems JetBlue Airways (JBLU) is facing, none of the analysts have a “strong buy” recommendation on the stock as of September 24. 25% out of the 16 analysts tracking JBLU had a “buy” recommendation on the stock, 62.5% had a “hold” recommendation, 6.3% had a “sell” rating on the stock, and the remaining 6.3% had a “strong sell” rating on the stock.
There haven’t been any changes to analyst ratings since JBLU’s traffic release. However, a few analysts downgraded the stock after the carrier’s Q2 2018 results. Imperial Capital reduced its price target to $24 from $26. Deutsche Bank also reduced its price target to $21 from $23 but maintained its “buy” rating. Cowen and Company also cut its price target to $20.00 from $22.00 with a “market perform” rating.
Analysts have a 12-month consensus target price of $20.6 for JetBlue, which is slightly lower than the $22.8 target price analysts had after Q2 2018. Currently, JetBlue’s highest target price is $27, and its lowest target price is $16. At the consensus target price, the stock has a return potential of 3.5% from September 24’s closing price of $19.8.
Analyst target prices for JetBlue Airways’ peers are as follows:
- American Airlines (AAL): $51.5 with a 29.7% return potential
- Delta Air Lines (DAL): $68.2 with a 17.7% return potential
- Alaska Air (ALK): $75.3 with a 9.3% return potential
- Spirit Airlines (SAVE): $53.5 with a 8.7% return potential
- Southwest Airlines (LUV): $20.6 with a 7.3% return potential
- United Continental (UAL): $93.9 with ~4.0% return potential
Investors can gain exposure to JBLU by investing in the First Trust Mid Cap Value AlphaDEX Fund (FNK), which holds 0.73% of its portfolio in JBLU.