Citi Upgrades JBLU Stock, Says Downside Is Limited Around $4

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According to TheFly, Citi upgraded JetBlue to ‘Neutral’ from ‘Sell’ and lowered its price target to $4.50 from $5.30.

  • Citi continues to expect supermajor airlines to outperform legacy low-cost carriers.
  • JetBlue reported $2.7 billion in second-quarter operating revenue, up 14.5% year over year, while RASM increased 10.9%.
  • Last week, Goldman Sachs recently cut its price target on JetBlue to $3.50 from $4 while maintaining a ‘Sell’ rating, according to TheFly.

JetBlue Airways (JBLU) shares were in focus on Tuesday after Citi upgraded the stock to ‘Neutral’ from ‘Sell’ and lowered its price target to $4.50 from $5.30. 

The firm believes the shares have less downside around the $4 level, according to TheFly.

JBLU shares traded 2% higher at $4.16 in premarket trading as of Tuesday. The stock closed at $4.06 on Monday, leaving it over 38% below its recent high of $6.62 hit on August 4.

Citi continues to believe supermajor airlines will outperform legacy low-cost carriers, according to TheFly.

JetBlue Eyes Longer-Term Profitability

JetBlue’s second-quarter results showed operating revenue of $2.7 billion, up 14.5% year over year, while revenue per available seat mile (RASM) rose 10.9%.

The airline also introduced a 2028 earnings target of at least $1 per share as it continues to execute its JetForward strategy. JetBlue said the strategy had generated $470 million in cumulative incremental earnings before interest and taxes (EBIT) through June 2026 and remained on track to deliver an annual incremental EBIT benefit of $850 million-$950 million by the end of 2027.

Analysts Take Different Views On JetBlue

Last week, Goldman Sachs analyst Catherine O’Brien lowered the firm’s price target to $3.50 from $4 while maintaining a ‘Sell’ rating on JetBlue shares, according to TheFly.

According to Koyfin data, 10 of 17 analysts covering JBLU rate the stock ‘Hold’, 4 rate it ‘Sell’, and 3 rate it ‘Strong Sell’.

JetBlue Expands Boston College Partnership

Separately, JetBlue announced on Monday that it had become the official airline of Boston College Athletics, expanding the partnership across Boston College football, men’s and women’s basketball, and men’s and women’s hockey.

The partnership includes in-venue LED and digital signage, hospitality opportunities, and social content around Eagles athletics. JetBlue and Boston College Athletics will also collaborate on a social media series focused on team travel.

JetBlue will additionally serve as presenting sponsor of Boston College football head coach Bill O’Brien’s podcast, according to the company’s announcement.

How Retail Views JBLU

Retail sentiment for JBLU on Stocktwits turned ‘Bullish’ over the past 24 hours, with ‘High’ message volume.

JBLU shares have fallen nearly 12.5% year to date.

Also read: Premarket Movers: OPCH, CEG Stocks Jump On Buyout Talks, Nuclear Deal – NKE Slides On ‘Sell’ Rating

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