JetBlue Stock Surging Despite Sector Skepticism

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

by Laura McCandless

Published on Apr 6, 2020 at 12:42 PM

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.

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