Airline stocks rally after Trump tweets support, wave of JPMorgan upgrades (NASDAQ:JBLU

published 07.10.2020 09:11

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Southwest Airlines (NYSE:LUV) is dropped to Underweight from Neutral: "We believe Southwest has ample liquidity to endure the COVID-19 crisis, though we believe risk/reward is more favourable in other stocks in our coverage."

However, as we believe that COVID-19 will materially impact the company's profitability, we believe that risk/reward dynamics are balanced at current valuation levels, and rate SAVE Neutral."

Spirit Airlines (NYSE:SAVE) is pushed up to a Neutral rating: "Spirit’s business model entered a maturation phase in 2018, with a new pilot contract, more disciplined growth, and better commercial execution related to market selection and yield management.

United Airlines (NASDAQ:UAL) lands at Overweight after being slotted at Neutral: "Despite recent volatility in the space, we believe that UAL can endure the current downturn with sufficient liquidity."

JP moves its rating on JetBlue (NASDAQ:JBLU) to Overweight from Underweight and assigns a price target of $17: "Our Overweight rating reflects our view that risk/reward is favorable at current valuation levels.