Markets & Finance

Morgan Stanley Cuts JetBlue to 'Equal-Weight'

Morgan Stanley downgraded JetBlue Airways (JBLU) to equal-weight from overweight.

Analyst William Greene says JetBlue remains the best growth story in airlines, in his view. But he notes shares are up 31% year-to-date vs. an 8% rise in the S&P 500. He says with the stock at his $36 target, he thinks much of next year's earnings growth is priced in, and that it's prudent to lower the rating.

Greene notes JetBlue is trading at 28 times the 12-month forward consensus, a 56% premium to the S&P 500's forward multiple. He sees $1.10 2003 earnings per share, and $1.50 for 2004.

The Aging of Abercrombie & Fitch
blog comments powered by Disqus