JetBlue falls as Seaport downgrades stock to 'neutral'
JBLU•Higher fuel-cost risks flagged
The brokerage said higher risks from the Middle East conflict could increase fuel costs and put more pressure on the airline's balance sheet.
It noted that the end of the Iran ceasefire and the continued closure of the Strait of Hormuz raise uncertainty around jet fuel costs.
Seaport said higher fuel prices are a bigger problem for JBLU than for some peers given its elevated debt levels. It added that the company could be forced to increase borrowing if fuel costs rise sharply and losses continue.
Seaport cuts JetBlue to neutral
Shares of U.S. carrier JetBlue Airways JBLU.O were down about 3% at $5.46 in early trading.
Seaport Research Partners downgraded JetBlue Airways JBLU.O to "neutral" from "buy" and withdrew its price target.
Street view and year-to-date performance
Twelve of 19 brokerages rate the stock "hold" and seven rate it "sell"; their median price target is $5.65, according to estimates compiled by LSEG.
Up to the last close, the stock was up about 24% year to date.
