(Updates with analyst commentary.)
Seaport Global downgraded JetBlue Airways (JBLU) to neutral from buy, as risks are rising as the US-Iran ceasefire comes to an end.
"The industry pricing backdrop remains solid which leads us to conclude JBLU surprises on 2H26 revenue (consistent with our prior thesis), however, the geopolitical backdrop worsens," analyst Daniel McKenzie wrote in a Monday note.
With no signs of the Strait of Hormuz opening anytime soon and jet fuel volatility, the airline will have to raise debt to finance losses, leading to an indebted balance sheet and ultimately shares becoming worthless, McKenzie wrote.
JetBlue has an average rating of underweight and mean price target of $5.60, according to analysts polled by FactSet.
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Price: $5.34, Change: $-0.32, Percent Change: -5.58%