JetBlue Airways: UBS maintains Sell, raises PT to $4 from $3.

JetBlue Airways: UBS maintains Sell, raises PT to $4 from $3.

Title: JetBlue Airways: UBS Maintains Sell, Raises Price Target to $4

UBS has revised its rating on JetBlue Airways (NASDAQ: JBLU) to a Sell, raising its price target to $4 from $3. The decision comes despite the airline's improved third-quarter outlook and strategic initiatives. Goldman Sachs, another major analyst firm, has maintained its Sell rating and $3.50 price target, citing significant debt and negative free cash flow.

JetBlue Airways reported an improved third-quarter outlook, with unit revenue expected to decline 2.75% year-over-year compared to a previous projection of a 4.0% drop. The company also indicated better-than-expected revenue and cost performance, with negative free cash flow of $1.2 billion in the last twelve months. Despite these improvements, Goldman Sachs noted that JetBlue's debt-to-equity ratio of 3.91x and significant debt burden of $9.4 billion remain concerning.

JetBlue's strategic initiatives, such as its JetForward transformation plan and Blue Sky alliance with United Airlines, have delivered EBIT benefits and bolstered customer satisfaction. However, the airline faces headwinds from rising labor and maintenance costs and fuel expenses. UBS's decision to maintain a Sell rating and raise the price target reflects broader sector pessimism and concerns about JetBlue's narrower profit margins.

Nomura Holdings Inc. has reduced its position in JetBlue shares by 23.9%, while American Century Companies Inc. and Charles Schwab Investment Management Inc. have increased their holdings. Despite these changes, the stock faces near-term headwinds, with Q3 2025 EPS estimates slashed to -$0.54 per share. However, JetBlue's revised guidance and cost-cutting initiatives suggest a path to breakeven or modest profitability.

Conclusion: JetBlue's Q3 2025 performance highlights its ability to thrive in a fragmented airline sector. While competitors like American and Southwest face demand-driven profit cuts, JetBlue's operational efficiency, strategic partnerships, and cost discipline position it as a relative outperformer. However, the stock's valuation remains a concern, and investors should closely monitor the company's ability to navigate sector challenges.

References:
[1] https://www.investing.com/news/analyst-ratings/goldman-sachs-maintains-sell-rating-on-jetblue-stock-despite-improved-outlook-93CH-4224777
[2] https://www.ainvest.com/news/jetblue-resilient-q3-2025-performance-strategic-edge-fractured-airline-sector-2509/
[3] https://www.marketbeat.com/instant-alerts/filing-nomura-holdings-inc-has-1260-million-stock-position-in-jetblue-airways-corporation-jblu-2025-09-01/