JetBlue Upgraded and Downgraded: What's Next?
JetBlue Airways (NASDAQ: JBLU) stock got a big upgrade from J.P. Morgan analysts last Wednesday. Less than 24 hours later, however, Fitch -- one of the three major credit rating agencies -- cut the airline's credit rating to junk territory.
These dueling changes to ratings highlight the substantial uncertainty about airlines' short- and medium-term prospects. Let's take a look at the justifications for the analyst moves and what they mean for JetBlue stock moving forward.
J.P. Morgan analyst Jamie Baker downgraded JetBlue to an underweight rating (the equivalent of sell) in June following a furious rally that saw JetBlue stock surge nearly 90% in just a few weeks. At the time, Baker correctly predicted that airline stocks' momentum couldn't last.
Source Fool.com
