UPDATE: Bank of America Downgrades JetBlue Airways

In a note released early Monday morning, Bank of America analyst, Glenn Engel downgraded shares of JetBlue Airways

from Neutral to Underperform and lowered the price target from $11.25 to $10.50. Engel wrote, "we believe expectations over management change are too aggressive and estimates too high." In alignment with this, he has lowered his 2014 and '15 EPS estimate from $0.65 and $0.75 to $0.58 and $0.65, respectively, citing slowing revenue gains and increasing competitive capacity. Engel also noted a change in management does not necessarily signify a change in strategy. A point he says is evidenced by the leadership change in 2008. A lack of change in strategy may not bode well for JetBlue, as Engel disagrees with current management's plan to increase margins by raising revenues. Instead, he feels lowering costs and capital spending could garnish better returns. Following the downgrade, JetBlue shares are trading down over three percent in the early hours of Monday's market session.