Jet2 (LSE: jet2) remains on the list on OBJECTIVE (Alternative investment market) – at least for now. With a robust earning rush, net cash position and the upcoming market capitalization FTSE 100 Territory, analysts are increasingly thinking that the company may be a future candidate for the Blue-Chip index. The problem is that it is not mentioned on the Main Square.

Jet2 shares currently trade in 1,628 pence, but the average destination price of the analyst is 2164 pence. This is almost 33% compared to current levels. The highest goal, 2500 pens, means 54% of potential discretion. Of the 12 analysts covering the consensus shares, it is strongly on the territory of the purchase.

What drives optimism?

Valuation and net cash position

Premature valuation JET2 looks like dissatisfaction. Actions trad up only 7.8 ahead on 2025, falling to 7.1 times in 2026 and 6.4 times to 2027, it places it much below the broader average travel sector. This happens despite being one of the most invigorating companies in space.

Based on the company to EBITDA-which adapts to cash cash, it looks even cheaper. EV-EBITDA is only 1.48 times in 2025, falling to 0.98 times in 2026. In the context of many global peers in sectors of rest and aviation, it trades about 4-8 times in this metric. IAGFor example, it trades about 3.7 times.

The key part of the reference to the valuation is the Jet2 net cash position. It is anticipated that net cash will escalate to almost 2.5 billion GBP by 2026. This gives JET2 an extremely pristine balance in the sector often burdened with a high level of debt. It significantly compresses its company value and supports its ability to invest, expand or return capital.

Operational progress

The JET2 was operating surgically, lower fuel costs with rising work costs were balanced. Jet2 is in the face of an escalate in a 25 million GBP annual employment costs as a result of changes announced in October.

The management had a budget for rising employment costs, while using more favorable jet fuel prices. Earnings are expected to grow constantly, and EPS forecast will escalate from 207 pens in 2025 to 254p to 2027.

There is, of course, a risk. Labor costs can escalate faster than expected, and all oil price increases compress margins. In addition, consumer trust remains a key variable, especially at higher percentage rates.

FTSE 100 in sight?

Well, you can certainly imagine Jet2 on FTSE 100.

With the current market capitalization, GBP 3.3 billion, JET2 is not yet enormous enough to enable FTSE 100. However, analysts see 33% recognition from current levels to achieve fair value, which would mean a valuation of approximately 4.4 billion GBP. This would place JET2 much above the typical threshold of 3.5 billion GBP to 3.7 billion GBP to enter the index – assuming that it was replaced on the Main Square.

Thanks to the robust foundations, attractive valuation and net buffer, JET2 looks more and more ready for a enormous league. This is part of my portfolio and I think investors should consider it.