JetBlue's Stock Heads Toward 7 1/2-year High After Upgrade

JetBlue Airways' stock rose 0.7% in midday trade Thursday, putting it on course to close at the highest level since February 2007, after an upgrade from Credit Suisse. Analyst Julie Yates raised her rating to neutral from underperform, and lifted her price target to $15 from $12, saying the low-cost air carrier delivered on its promise to lay out a path to improved returns. JetBlue said at a gathering of investors on Wednesday that it would focus on returns in the coming years, by adding seats to some aircraft and introducing baggage fees on certain fair bundle options. Yates said JetBlue's plan makes the earnings story compelling, "but execution risk keeps us on the sidelines." Among other analysts' reactions, J.P. Morgan's Jamie Baker reiterated his neutral rating, saying while JetBlue's plan was "modestly bullish," it also carries risk "if customers resist these changes." Cowen & Co.'s Helane Becker kept her rating at outperform, saying JetBlue's investor day went "exactly as expected."

Copyright © 2014 MarketWatch, Inc.