LUV - Southwest Airlines: Elliott Had Easier Options
2024-06-11 12:38:20 ET
Summary
- Elliott Investment Management made a large investment in Southwest Airlines Co. due to underperformance, calling for a leadership upgrade and predicting a 77% upside potential.
- The airline faces revenue and cost performance issues, needing a vast operating improvement to justify the current price compared to legacy airlines.
- Legacy airlines like Delta and United are better deals, trading at lower P/E ratios and not requiring strategic turnarounds to perform well.
Elliott Investment Management made a large investment in Southwest Airlines Co. ( LUV ) due to huge underperformance by the airline. The ironic part is that the better performing airline stocks are incredible bargains and don't require strategic turnarounds to work. My investment thesis is Bullish on the stock due to expected higher margins and profits over time....
Southwest Airlines: Elliott Had Easier Options