JetBlue Airways Corporation
Thesis
JetBlue has significant upside potential as it implements shareholder-focused initiatives under new CEO Robin Hayes. The company is expected to improve its return on invested capital (ROIC) by over 700 basis points, driven by low-hanging fruit initiatives and potential load factor increases. At an 8x adjusted EBIT multiple for 2017, JetBlue could be valued at $26 per share, indicating a 64% upside from its current price of $15.15.
Did it work?
The long thesis for JetBlue anticipated significant upside potential, projecting a price target of $26 per share based on improved ROIC and shareholder initiatives. However, the stock has declined by 58% since the pitch, indicating that the expected improvements and valuation did not materialize, leading to a clear failure of the thesis.
Raw excerpt
No raw excerpt stored.