Morgan Stanley Opens 60-Day Research Tactical Idea on JetBlue Airways

Morgan Stanley has opened a research tactical idea on JetBlue Airways JBLU believing the share price will fall over the next 60 days. In the report, Morgan Stanley writes, "Consistent with our 4Q11 Review (see Co-Pilot: 4Q11 Airline Review: How Would We Be Positioned? 2/12/12), we expect JBLU to underperform SAVE on (1) SAVE's ability to maintain its low cost advantage vs. JBLU's cost creep, (2) SAVE's more attractive margins and EPS growth profile, (3) SAVE's valuation discount to JBLU on 2012 estimates and (4) SAVE's upside to 2012 consensus estimates per our model. We have issued this RTI in conjunction with a positive RTI on SAVE as part of a pair." Morgan Stanley maintains its Underweight rating on JetBlue Airways, which closed Friday at $5.86.