Raymond James recently reshuffled several ratings across the U.S. airline sector ahead of second-quarter earnings. JetBlue Airways (JBLU) landed on the wrong side of that review after the firm downgraded the stock to “Underperform” from “Market Perform.”
Analyst Savanthi Syth struck a cautious tone while explaining the move. Syth acknowledged that JetBlue and Frontier (ULCC) remain “the biggest beneficiaries” of Spirit Airlines' recent demise. Even so, the analyst also pointed out that JBLU stock faces a ceiling because of the company's convertible debt, which carries a conversion price of approximately $6.12.
