JetBlue stock price has rebounded in the past few months even as its short interest has risen to 16% and as analysts have turned highly bearish on the company. JBLU jumped to $5.52, its highest level since September 3, and 40% above the lowest level in December last year.
Analysts have turned bearish on JetBlue stock
Data compiled by MarketBeat shows that Wall Street analysts have turned highly bearish on JetBlue, one of the top low-cost airlines in the United States.
The consensus stock target for the stock is $4.94, down by 10% from the current level. 6 of the 11 analysts tracking the company have a sell rating, while five of them have a hold rating.
Goldman Sachs’ Catherine O’Brien maintained a sell rating even as she boosted her target from $3.5 to $4, while Susquehanna, Citigroup, Weiss Ratings, UBS, and Bank of America have a sell or an underperform rating on the stock.
READ MORE: JetBlue stock price pattern points to a 55% surge
JetBlue stock price has underperformed because of the rising competition from the big carriers like Delta, United Airlines, and American, which have expanded their routes and their low-cost services.
At the same time, investors have taken a bearish outlook for the company, as the woes in the low-cost carrier industry have continued. Its short interest has jumped to over 16%, a sign that they expect to benefit as the stock retreats this year.
The recent financial results showed that JetBlue Airways continued to struggle in the third quarter. Its revenue dropped by 1.8% YoY to $2.3 billion, bringing the nine-month figure to $6.8 billion. Its net loss also jumped to $143 million.
Wall Street analysts expect that the upcoming results will show that the revenue dropped by 2.54% to $2.22 billion, while the earnings per share (EPS) deteriorated to 46 cents.
On the positive side, analysts expect that its financial results will start to improve in this year, with the average estimate being that its revenue will move to $9.7 billion from the 2025 level of $9.03 billion.
The company is also expected to reduce its losses, with the average estimate being a loss -per-share of 92 cents, better the previous $1.61. This optimism explains when the stock has rebounded as investors anticipate a good turnaround.
JetBlue share price technical analysis
JBLU stock price chart | Source: TradingView
The daily timeframe chart shows that the JetBlue stock price has rebounded in the past few months, moving from a low of $3.99 in November to the current $5.50.
It formed a double-bottom pattern, a popular bullish reversal sign in technical analysis. Its neckline is at $5.72, its highest level in September.
The stock has moved above the 50-day and 200-day Exponential Moving Averages (EMA), while most oscillators have pointed upwards. It is also about to form a golden cross pattern
Therefore, the stock will likely continue rising in the near term, with the next key target being at the 61.8% retracement level at $6.41, followed by the 78.6% retracement at $7.45.
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