Biz Brief: JetBlue Shares Jump Over 5% on Upgrade
Merrill Lynch/Bank of America upgraded JetBlue to buy from neutral and raised its target price to $11 from $6.50, Notable Calls reported. The broker believes previous headwinds from the new reservation system and JFK construction runway are behind the airline and that cost pressures will ease. It further believes the carrier will show continued improvement due to schedule strength in JFK and rising market share in Boston. As a result, Merrill doubled its second-quarter estimate to 8 cents per share, above the 6 cents consensus. It also raised full year estimates.
Meanwhile, Deutsche Bank initiated JetBlue with a buy and a price target of $8.