JetBlue, Spirit Air Rise; J.P. Morgan Eyes Post-COVID Demand Jump

JetBlue and Spirit Airlines traded higher Wednesday after receiving upgrades from JPMorgan Chase.
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Shares of JetBlue  (JBLU) - Get Report and Spirit Airlines  (SAVE) - Get Report advanced early Wednesday after J.P. Morgan Chase  (JPM) - Get Report upgraded the two U.S. carriers to overweight, expecting the coronavirus to have no permanent negative margin impact on airlines.

At last check shares of JetBlue rose 2.6% to $21.30, while shares of Spirit Airlines rose 2.4% to $37.94.

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J.P. Morgan analyst Jamie Baker double upgraded JetBlue to overweight from underweight with a price target of $25, up from $15.

The coronavirus "crisis may provide a profit stimulus to the industry in the event that corporate demand rebounds to within 80% of estimated 2019 levels,” Baker wrote in a note.

JetBlue Drops After Offering $650 Million of 5-Year Notes

The investment firm expects JetBlue to continue to focus on cost controls in the wake of the pandemic, and it called the current valuation attractive, Bloomberg News reported.

J.P. Morgan also raised Southwest Airlines  (LUV) - Get Report to a neutral rating from underweight. The stock was 1.1% higher at $63.95.

And the firm affirmed its overweight ratings on Delta Air Lines  (DAL) - Get Report and Alaska Air  (ALK) - Get Report and underweight ratings on United Airlines  (UAL) - Get Report and American Airlines.  (AAL) - Get Report

United and Alaska Get Upgrades From Morgan Stanley

Last week, Morgan Stanley upgraded United Airlines  (UAL) - Get Report and Alaska Air  (ALK) - Get Report, saying that analysts’ consensus estimates for airline earnings were too low.

On Tuesday, the Chicago aerospace giant Boeing  (BA) - Get Report said it secured net new orders for the second consecutive month in March as carriers prepared for a post-pandemic rebound in global passenger traffic.

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