11:45 AM EDT, 04/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $6.50, down $0.50, reflects a 3.4x multiple of EV to projected '25 EBITDA, a discount to JBLU's historical average. We think a discount is merited due to the Pratt & Whitney engine recall, causing JBLU to ground 4% of its capacity in '24, which could last until '25-'26. We narrow our '24 LPS view to -$0.83 from -$1.16 but widen our '25 LPS to -$0.77 from -$0.55. Q1 LPS of -$0.43 vs. LPS of -$0.34, beat consensus by $0.09. Revenues fell 5% Y/Y, while capacity fell 2.7% Y/Y. Shares are down ~16% today due to JBLU revising its '24 guide, with revenues expected to be down in the low-single digits (vs. the prior guidance for flat revenue growth), while expecting Q2 revenues to fall by 6.5%-10.5%, which is more than double consensus expectations (-3.4%). However, we note that JBLU has been proactive in cost-cutting measures (cutting unprofitable routes and deferring its '25-'26 aircraft deliveries), expecting its liquidity to improve by $340M over the next two years, which we view as positive.