Citigroup is out with a research report this morning, where it downgrades shares of JetBlue Airways Corp. JBLU to Hold/High Risk, from Buy/High Risk; it also raised its price target on the stock to $8.00, from $7.00.
The Citi analysts said that the call was based purely on valuation. They noted that, while JBLU's competitive network, advantaged non-fuel costs, solid liquidity, and more conservative growth support improving earnings and cash flows, the stock's valuation appears fair versus peers'.
They said, “With the stock at 6x 2011E EV/EBITDAR, EBITDAR margins plateauing around 20%, and growth plans limited to mid-single digit (which we commend), we find it difficult to assess a multiple in excess of a turn above the group's current 5x 2011E EV/EBITDAR. JBLU has previously traded at 7x+ but when margins were recovering or revenue growth was 20%+ YoY, which we are not projecting in 2011-13.”
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in