LUV - Bernstein Upgrades Southwest Airlines Stock But Still Sees Risk To The Downside | Benzinga
Bernstein Research analyst David Vernon upgraded Southwest Airlines Company (NYSE:LUV) from Underperform to Market Perform and raised the price target from $26 to $32 on Tuesday, citing a change in sentiment on domestic pricing.
In a new note to clients, Vernon highlighted resiliency in travel demand and positive commentary from airline management teams during the recent earnings cycle which has led Bernstein to anticipate stronger development in the domestic market than it had previously forecasted.
The Bernstein analyst pointed to a more moderate capacity forecast due to slowing deliveries from Boeing, equipment availability issues at Spirit and Frontier Airlines' shift out of competitive markets. When combined with strong travel demand, Bernstein believes a positive revision to revenue forecasts is appropriate.
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The Bernstein analyst noted, however, that it will ...