The shares of JetBlue Airways are trading at a fractional loss today after Goldman Sachs downgraded the firm from buy to neutral, citing few positive catalysts in the short term, despite the possibility for long-term margin growth. Goldman noted that the weakened U.S. economy and transcontinental competition from Virgin America could prove difficult obstacles for JBLU to surmount. Additionally, the broker lowered its fiscal 2007 earnings guidance from 17 cents per share to 14 cents per share.
The stock's progress has lately been capped by its 10-week moving average, along with its 20-day trendline. Resistance from these levels is holding steady in today's session. On the bright side, JBLU now has plenty of opportunities for future upgrades, given that Zacks reported just 1 buy and 9 hold or sell ratings prior to this morning's downgrade.