On a challenging Friday for the stock market, JetBlue Airways experienced a nearly 6% decline in its stock price, influenced by a notable decrease in its price target by an analyst. This downturn aligned with the broader market trend, as the benchmark S&P 500 also fell by approximately the same percentage.
JetBlue faced back-to-back price target reductions. Analyst Helane Becker from TD Cowen lowered her fair-value assessment of JetBlue’s stock from $6 to $4 per share, representing a 33% decrease, while maintaining a hold recommendation on the stock. This came a day after Bank of America’s analyst Andrew Didora adjusted his price target for JetBlue from $5.25 to $4.25, despite maintaining a slightly higher estimate than Becker’s. Didora rated JetBlue as underperform, effectively a sell recommendation. His negative outlook is attributed to weakening consumer demand, a trend affecting several U.S. airline stocks.
The travel and tourism industry’s popularity, which surged following the coronavirus pandemic, appears to be declining. Consumers are increasingly concerned about budget impacts due to recent economic challenges, including tariffs. This has led to more cautious sentiments towards airline stocks.
Bank of America is noted as an advertising partner of Motley Fool Money. Eric Volkman, the original article’s author, does not hold positions in the mentioned stocks. The Motley Fool has positions in and recommends Bank of America.
