NEW YORK (TheStreet) -- JetBlue Airways (JBLU) shares are down 2.5% to $12.16 on Tuesday after analysts at Credit Suisse (CS) started coverage with an "underperform" rating as a result of its view that the airline will not be able to meet elevated expectations due to changes in strategy and management.
"Share outperformance (+66%) and multiple analyst upgrades since late April have centered primarily on optimism for a CEO/strategy change and earnings upside from fare unbundling, but we see little change to JetBlue's hybrid growth strategy. We are less bullish on the level of incremental earnings from fare family/ancillary revenue," said analysts.
TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate JETBLUE AIRWAYS CORP (JBLU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."