Susquehanna has adjusted its outlook for JetBlue Airways (NASDAQ: NASDAQ:JBLU), increasing the price target to $7 from the previous $6 while maintaining a Neutral rating on the stock.
The revised price target reflects an improved financial forecast for the latter half of 2024 and the full year of 2025, based on better-than-expected operating margins.
The firm's updated analysis suggests a less negative outlook for JetBlue's adjusted earnings per share (EPS) for the second half of 2024, with estimates now at negative $0.55 compared to the prior negative $0.85.
This adjustment is attributed to a marginally better operating margin. Looking ahead to the full year 2025, the firm anticipates the adjusted EPS to be negative $0.55, an improvement from the earlier estimate of negative $0.70.
Susquehanna's core assumptions for JetBlue now include available seat miles (ASMs) at approximately 0%, contrasting with the consensus of a 0.4% decline. Cost per available seat mile excluding fuel (CASM-ex) is projected to increase by 6%, as opposed to the consensus of a 4.4% rise. Meanwhile, the total revenue per available seat mile (TRASM) is expected to grow by 4.9%, slightly below the consensus of a 5.1% increase.
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