Argus Upgrades JetBlue, Sends Shares Soaring 6%

Shares of JetBlue JBLU are trading higher by 5.9 percent to $8.80 in Wednesday's trading after Argus upgraded the shares from Hold to Buy with a price target of $10. Analyst John Staszak's upgrade reflects positive factors such as:

• Expanded route network.
• Increased ancillary revenue.
• Improved in-flight internet service.
• New premium class call Mint, which will offer ‘lie-flat' seats on transcontinental flights beginning in 2H14.

The analyst raised the 2014 operating earnings estimate from $0.69 to $0.72 and expects revenue of $6 billion, which is a 10 percent increase from 2013. Staszak sees the stock as cheap, “trading at 11.4-times the 2014 EPS forecast, well below the five-year average annual range of 18.8-59 and the peer group of 19.6.” The stock has been trading in a range between $8 and $9.2 for the past four months.