SPY425.10+2.50 0.59%
DIA341.98+3.20 0.94%
IXIC14,369.71+97.98 0.69%

Research Alert: CFRA Keeps Hold Opinion On Shares Of Jetblue Airways Corporation

05/11/2021 13:43

05:40 PM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target price to $20 from $17, 17x our 2022 EPS estimate (raised to $1.17 from $1.08; 2021 cut to -$2.59 from -$2.18). Q1 adjusted EPS of -$1.48 beat consensus by $0.17. Q1 revenue was 61% below Q1 2019 (pre-pandemic), with capacity down 41% and average ticket prices down 18%. There are signs of a strong demand recovery underway, though, as Q1 revenue grew 11% sequentially vs. Q4 2020, despite the major resurgence of Covid-19 in the U.S. in early January and February. With highly effective vaccines becoming widely available across the U.S., we expect JBLU's leisure passenger volume to recover by year-end 2021, with U.S. business travel likely not until year-end 2022, in our view. JBLU's market cap is now 21% larger than year-end 2019, driven primarily by a higher share count as the company raised equity capital to weather the downturn. With the market cap already up so much vs. pre-pandemic levels, and with the company still losing money, we don't see much remaining upside over the next year.