JetBlue stock has bounced back in recent months even as Wall Street turns bearish and short interest rises. The airline’s shares jumped to $5.52, their highest since September 3, and 40% above the December low.
Analysts remain bearish on JetBlue
Data from MarketBeat shows that analysts are cautious on JetBlue, one of the top low-cost carriers in the US. The consensus price target is $4.94, about 10% below current levels. Out of 11 analysts, six have a sell rating, while five recommend holding the stock.
Goldman Sachs analyst Catherine O’Brien kept her sell rating despite raising the target from $3.50 to $4. Others, including Susquehanna, Citigroup, UBS, Weiss Ratings, and Bank of America, also maintain sell or underperform ratings.
The bearish outlook is driven by rising competition from major airlines like Delta, United, and American. These carriers have expanded routes and low-cost services, putting pressure on JetBlue. Investors’ short interest has climbed above 16%, indicating many expect the stock to fall this year.
JetBlue’s financial struggles continue. In the third quarter, revenue fell 1.8% year-on-year to $2.3 billion, bringing nine-month revenue to $6.8 billion. Net losses widened to $143 million. Analysts expect upcoming results to show revenue of $2.22 billion and an EPS of 46 cents.
On the brighter side, estimates suggest improvement this year. Revenue could rise to $9.7 billion from $9.03 billion in 2025, and losses per share may shrink to 92 cents from $1.61. This optimism has helped drive the recent rebound in the stock.
JetBlue Stock technical outlook
Technically, JetBlue shares have shown a strong rebound from $3.99 in November to the current $5.50. The stock formed a double-bottom pattern, a bullish signal in technical analysis, with a neckline at $5.72.
Shares have moved above the 50-day and 200-day exponential moving averages. Most oscillators point upward, and a golden cross pattern is forming. The next key targets are the 61.8% retracement level at $6.41 and the 78.6% retracement at $7.45.
Overall, despite analyst caution and rising short interest, JetBlue’s stock shows potential for continued near-term gains as investors anticipate a turnaround.
