.September 9, 2024 3:59 PM

JetBlue Airways (NASDAQ:JBLU) saw a more than 7% increase in shares after BofA Securities upgraded the company from Underperform to Neutral, setting a new price target of $6.00. The analysts pointed to stable air travel demand, reduced domestic capacity, and lower fuel prices as positive industry trends. JetBlue’s self-help measures and improved outlook were highlighted in a recent investor update. Despite high net leverage as a risk, analysts believe improving fundamentals and a favorable industry environment justify the upgrade. The new price target is based on a valuation of approximately 6.0x 2025 EBITDAR, reflecting a shift from previous valuation methods.