Citi raised the firm’s price target on JetBlue (JBLU) to $7.75 from $6 and keeps a Neutral rating on the shares. The firm says the recent rallies in shares of JetBlue and Frontier Group “seem to have gone too far,” as earnings recoveries have not translated into sustainable free cash flow generation. Citi agrees that JetBlue could eventually gain market share from Spirit, but says the cadence and magnitude of these gains is hard to include in earnings estimates.
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