Airline Stocks, Airport, Air Travel Stocks, Travel Stocks

JP Morgan Securities raised JBLU from “underweight” to “overweight”.

The shares of JetBlue Airways Corporation (NASDAQ: JBLU) fly this morning after the airline company received an upgrade from JP Morgan Securities. The analyst raised his rating from “underweight” to “overweight” and raised his price target from 15 to 25 USD. JP Morgan Securities also upgraded its ratings on Southwest Airlines (LUV) and Spirit Airlines (SAVE), noting that the pandemic will not have “lasting negative effects on US airlines.” Security recently rose 2.6% to $ 21.31

This is at least the third bull note JBLU has seen this month. Raymond James came with one Bull note Early last week and just a day later, Morgan Stanley raised its price target. There are still some holdouts among brokers, however, and to date, five of the eleven JetBlue stocks featured have still been rated “hold” or worse. Additionally, the 12 month consensus price target of $ 20.86 translates into a 2% discount on current levels.

Today’s pop brings JBLU back within striking distance of its April 21 two-year high of $ 21.96. While the $ 22 level continues to elude equity, last week’s pullback from its aforementioned high was captured by steady support from the 40-day moving average. In addition, JBLU grew over 131% in the past year.

The option pits were mostly bullish as the JBLU continues to climb. On the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX), the stock has a 10-day call / put volume ratio of 10.45, which is higher than any other metric from the past year. This means that calls are faster than usual.

The option volume is bullish again today, with 9,145 calls and 1,768 puts on the tape – twice the intraday average. The calls made on April 22nd and 21st are the most popular, followed by the May 22nd call. This suggests that by the time these contracts expire, traders may have more upside for JBLU.

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