Citigroup Global Markets lowered its rating Thursday on shares of JetBlue Airways Corp on concerns that the airline’s stock is already trading at its fair price, which limits future growth possibilities.
Citigroup praised JetBlue’s management and operations but stated the company’s stock isn’t trading at the kind of discount that could let investors swoop and earn a profit as shares rise to their true valuation. Citigroup lowered its rating on JetBlue shares from “buy” to “hold” and raised its share price target from USD7 to USD8 per share. JetBlue’s stock fell 1.7% yesterday.
Indian LCC SpiceJet stated KAL Airways and Kalanithi Maran raised their direct holding in SpiceJet to 38.66% through the purchase of an additional 7.68% stake, or 31.08 million shares, for INR1.5 billion (USD33.1 million). The share price under the open offer is nearly 35% lower than the current market price. Shares in SpiceJet declined 3.7% yesterday to INR88.85.
Selected LCCs daily share price movements (% change): 11-Nov-2010