Hudson Securities Increases LUV 4Q EPS Estimates

Hudson Securities is lifting its Southwest Airlines LUV 4Q EPS est. to $0.20 (from $0.18) on better revenues. “Two fare increases in 4Q (5 total now for 2010) that admittedly slipped from our radar suggest LUV and the industry have yet more pricing headroom to offset higher fuel expense thereby giving us more comfort in our margin assumptions looking ahead,” Hudson Securities writes. “Our unchanged $17 PT is based on shares of LUV trading at 15x our 2011E EPS of $1.10.” Southwest Airlines closed Friday at $12.93.