A veteran Wall Street analyst upgraded JetBlue (JBLU) - Get Report and downgraded Southwest (LUV) - Get Report on Wednesday. "All domestic airlines are not created equal; neither are they equally valued." wrote JPMorgan analyst Jamie Baker in a report released Wednesday.
Wall Street has long favored domestic carriers. JetBlue shares closed Tuesday at $21.42, down 4.5% year to date. Southwest shares closed Tuesday at $49.65 and are flat for the year.
Baker, citing his forward earnings estimates, said JetBlue's price-to-earnings ratio is "one of just two U.S. airlines in our coverage trading below 10X 2017 forecasts."
This article was written by a staff member of TheStreet.