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Wolfe Research downgraded JetBlue Airways Corporation (NASDAQ:JBLU) to an Underperform rating after having the airline stock set at Peer Perform.
The firm has a decided lack of confidence in the logic for the proposed takeover of Spirit Airlines (SAVE).
"We continue to struggle to understand the rationale for the SAVE merger... We expect approximately 40% EPS dilution for JBLU in C23 from a potential merger, and that’s before factoring in any potential dis-synergies from higher pilot costs," warned analyst Scott Group.
Beyond the Spirit Airlines wildcard, Group and team note that JetBlue is underperforming peers on controlling costs.
"On a capacity-adjusted basis, JBLU’s underlying cost guidance is worst among the airlines except for ALGT. And we see the same directional trend for the full-year."
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Comments
I fly from JFK to Nashville on JetBlue next week so it should be interesting to see if any problems arise.
JetBlue was downgraded by Wolfe Research is in fact true.
If you do not like Wolfe Research or analysts, that is fine.
But it is not a misleading post???