Vetr Crowd Downgrades Jet Blue: Here's Why

• JetBlue Airways Corporation JBLU rose almost 65 percent year-to-date.
• The Vetr crowd downgraded JetBlue from 3.5 stars to three stars.

Broadly speaking, the Vetr crowd is becoming more bearish on JetBlue. The crowd downgraded the stock from 3.5 stars to 3 stars recently, even though 55 percent of the ratings are still bullish. The site’s formula considers several factors on top of Buy, Hold or Sell ratings to award stars.

The three-star  is accompanied by a $27.50 crowd price target, which implies an upside of only 6 percent from current valuations.

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Wall Street analysts are also becoming less optimistic on the airliner. Julie Yates of Credit Suisse downgraded the stock from Outperform to Neutral, while lowering the price target from $32 to $28. The analyst noted that, given the considerable surge in the company’s stock price, she "expects investors to take profits and rotate to Southwest Airlines Co LUV, especially given the narrowing PRASM outperformance at JetBlue."

Analysts at JP Morgan downgraded the stock from Overweight to Neutral a couple of months ago.

Investors should also consider the overall bearishness surrounding the airline industry, especially after Southwest Airlines cautioned that "its fourth quarter 2015 operating revenue per available seat mile (RASM) will be approximately flat to down 1.0 percent year-over-year."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.