UPDATE: Imperial Capital Initiates Southwest Airlines with In-Line, $10 PT; Benefits More Than 12 Months Away

Imperial Capital initiates Southwest Airlines LUV with an In-Line rating and a $10 price target. Imperial Capital notes, "Benefits from LUV's new IT systems, integration from AirTran, and expansion internationally should be positive in 2013 and 2014, in our view, but near-term initiatives such as adding seats to planes may only slightly move the needle. As is the case with all airlines, LUV should benefit from the recent drop in fuel prices, but on a relative basis, we think the legacy carriers' inexpensive valuations make them a more compelling investment over the next 12 months, thus our In-Line rating on LUV." LUV closed at $9.31 on Wednesday.