JetBlue Airways Corp.'s stock climbed 1.1% in morning trade, bucking a selloff in the broader market, after Credit Suisse upgraded the air carrier on expectations that improving margins and upcoming catalysts could drive further outperformance. Analyst Julie Yates raised her rating to outperform, after being at neutral since Nov. 20, and boosted her stock price target to $27 from $21. Since Nov. 20, JetBlue's stock has soared 56%, compared with a 9.7% rally in the NYSE Arca Airline index and a 2.2% gain in the S&P 500 . "While the [year-to-date] outperformance has given us pause on upgrading, we think the [JetBlue] story still has legs," Yates wrote in a note to clients. "Recent investments...are driving improved returns and the core network is performing well and even supported a fare increase in March." Some positive catalysts Yates expects are fare options rollouts in the second quarter, seat densification and improved affinity card economics.
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