JetBlue Stock Surging Despite Sector Skepticism

The analyst also cut its price target to $10 from $15

Laura McCandless

Deputy Editor

Apr 6, 2020 at 12:42 PM

JBLU

JetBlue Airways Corp (NASDAQ: JBLU) is up 7% to trade at $8.05 at last check. This comes amid a slew of skepticism and downgrades throughout the airline sector. J.P. Morgan Securities is increasingly convinced that the airline industry's road to recovery back to 2019 levels of output will be a multi-year affair. The analyst subsequently downgraded JBLU to "neutral" from "overweight" and cut its price target to $10 from $15.

Since hitting a six-year low of $6.61 on March 23, the equity has struggled to break out past the 20-day moving average. JBLU has taken a 58.3% haircut in the last three months, and is now down 58.9% year-to-date.

Analysts are leaning bearish today, as seven of the 12 covering firms sport a tepid "hold" or worse rating. Furthermore, the current target price of $15.25 is a 90% premium to current levels.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!

Special Offers from Schaeffer's Trading Partners