In a report released today, Andrew Didora from Bank of America Securities reiterated a Sell rating on JetBlue Airways, with a price target of $4.00.
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Andrew Didora has given his Sell rating due to a combination of factors impacting JetBlue Airways. Despite reporting a slightly better-than-expected EPS for the third quarter of 2025, the company’s unit revenues fell short of estimates, indicating ongoing challenges in revenue generation. The guidance for the fourth quarter aligns closely with previous expectations, but only minor improvements are anticipated.
Additionally, while JetBlue is targeting a breakeven operating margin in 2026 through its JetForward initiatives, the forecasted EBIT margin remains below this target, suggesting potential difficulties in achieving profitability. The domestic market has shown some signs of recovery, yet it continues to lag, and the company’s capacity growth projections may not meet expectations. These factors collectively contribute to the underperformance rating as JetBlue navigates through macroeconomic headwinds and strives to enhance its premium offerings.