Jenny Harrington sees a 40% upside in this airline stock

JetBlue Airways Corporation (NASDAQ: JBLU) has taken quite a beating this year, with shares down more than 30% from the year-to-date high in mid-March. Now that travel is returning, however, Gilman Hill’s Jenny Harrington says it’s time to hop back on.

Harrington makes a bullish case for JetBlue

Harrington added JetBlue to her growth portfolio earlier in November. On a continued recovery in business and leisure travel in the coming months, she sees an about 40% upside in the stock. On CNBC’s “Worldwide Exchange”, she said:

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Business travel is returning, leisure travel has returned, if not fully, is well on route. So, if JetBlue can get back to $2.0 that they were earning before the pandemic, and you give it a 10 times multiple, which isn’t much, it’s just less than half the market multiple, you have a $20 stock.

Other reasons she likes JetBlue include a high free cash flow yield. The stock is currently trading near its year-to-date low that further makes it a great buying opportunity.

Berman confirms the travel industry is recovering

Also on Friday, Scott Berman of PwC said the travel industry was in a much better shape now than it was about six months ago. In a separate interview on CNBC’s “Worldwide Exchange”, he noted:

Corporate travel is showing pockets of strength. It’s not all the way back, and it’s going to take the better part of 2022 before we can really tell where corporate travel in the U.S. is. But I can tell that it is doing much better, and the leisure segment as well has carried the day.

According to Berman, bookings for 2022 look strong, which could translate to higher prices, at least in the high-demand periods like the holidays.