Goldman Sachs analyst Catherine O’Brien resumed coverage of JetBlue (JBLU) with a Sell rating and $5.50 price target which represents 23% downside. While JetBlue has a product tailored to capture strengthening premium demand, its capacity remains constrained by issues largely outside of management’s control, the analyst tells investors in a research note. The firm’s Sell rating is underpinned by JetBlue’s profitability impairment driven by engine-related and regional capacity constraints, and its higher than industry leverage.
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