Deutsche Bank Upgrades JetBlue to Buy and Raises Target to $5.50

Deutsche Bank upgraded JetBlue Airways to Buy from Hold on Thursday and lifted its price target to $5.50 from $3, citing a more favorable airline backdrop and planned product launches. The new target implies 54% upside to Wednesday’s close.

Deutsche Bank analyst Michael Linenberg said an industry focus on “yield in response to inflationary pressures,” including higher fuel prices, may disproportionately benefit airlines serving value-conscious, discretionary travelers. He also expects planned product launches at JetBlue and Frontier to support revenue and margins from 2027 onward.

The bank also cited positive airline returns in 21 of the last 25 years’ December quarters. The upgrade differed from the broader analyst view: 13 of 18 analysts covering JetBlue had Hold ratings.

JetBlue shares had gained more than 16% over the week through Thursday, following the airline’s Oct. 26 increase to its full-year revenue per available seat mile guidance. The stock remained down about 22% year to date as higher fuel costs tied to the Iran war pressured margins. JetBlue’s third-quarter results included a $257 million loss as its fuel bill rose 61%.