How Wall Street Views JetBlue Airways ahead of Q1 Results

Analysts’ recommendations

Analysts don’t seem too optimistic about JetBlue Airways (JBLU) in the near term as it has received a consensus “hold” recommendation from analysts polled by Reuters.

How Wall Street Views JetBlue Airways ahead of Q1 Results

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

The company has struggled in recent years due to rising costs and lower passenger fare rates. It made a strong comeback in late 2018, reporting a 56% year-over-year jump in earnings and robust unit revenue growth in the fourth quarter.

Nonetheless, analysts’ projections of over a 50% decline in first-quarter EPS suggests it’s still struggling to turn its financials around. On March 5, the company also lowered its unit revenue guidance for the first quarter as it saw low fares for last-minute bookings and weak demand in off-peak periods.

Only 21% of the 19 analysts covering the stock have provided a bullish recommendation. About 63% of analysts have suggested holding it while the remaining 16% recommend selling the stock. Wall Street analysts’ consensus target price of $19.03 shows an increase of 12.4% in a year.

Peer ratings

Analysts have a different view on the majority of JetBlue Airways’ peers. They have provided a “buy” recommendation for most US airlines (IYT) and see significant upside potential in their stock price in a year.

Approximately 76% of the 21 analysts surveyed have provided a “strong buy” or “buy” recommendation on Delta Air Lines (DAL) while the remaining 24% have a “hold” rating on the stock. Their target price of $66.37 depicts a return of 15.5%.

For Spirit Airlines (SAVE), about 83% of 18 analysts have a “strong buy” or “buy” recommendation while the remaining 17% have given a “hold” rating. The target price of $72.44 signifies a gain of 31.3% in the next year.

Nearly 62% of the 26 analysts tracking American Airlines (AAL) have given the stock a “strong buy” or “buy” recommendation, and the remaining 38% said “hold.” Their consensus target price of $43.28 shows an upside potential of 28.2% in the next year.