JetBlue stock hit $5.52 on Thursday, reaching its highest price since September. This rebound marks a 40% increase from the December low. The rally occurs despite a bearish outlook from Wall Street analysts. Short interest in the stock has increased to over 16%.
Analysts maintain a consensus target price of $4.94, below the current trading level. Six of eleven analysts covering the stock have issued a sell rating. This negative sentiment stems from struggles in the low-cost carrier industry and increased competition. JetBlue reported a net loss of $143 million in the third quarter.
Despite current challenges, optimism exists for the airline’s future performance. Analysts anticipate revenue will grow in the coming year. They also expect the company to narrow its losses. This potential turnaround may contribute to the recent stock price rally.