Raymond James analyst Savanthi Syth said a Chapter 11 restructuring may be the prudent course of action for JetBlue to address its capital structure, downgrading the carrier to Underperform from Market Perform. The downgrade reflects the constraint of a roughly six dollar and twelve cent conversion price on its convertible debt and the approaching one point eight billion dollar balloon payment due in 2029, as the airline continues to struggle with profitability. Syth also downgraded Delta to Outperform from Strong Buy, citing an eighteen percent share gain over the past month that presents a narrower near-term upside valuation, while maintaining a bullish outlook on Delta's strong balance sheet and balanced capital deployment including a fifteen percent dividend hike.
JetBlue Airways CorpRaymond James analyst suggests Chapter 11 may be best option and downgrades to Underperform due to debt burden.
Delta Air Lines IncDowngraded to Outperform from Strong Buy due to recent share gain, but still bullish with dividend hike.
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