Goldman Sachs Turns Bearish On This Airlines

Goldman Sachs analyst Catherine O'Brien downgraded Southwest Airlines Co LUV to Sell from Neutral and lowered the price target to $36 (a downside of 14%), down from $59.
The analyst expects the company to see higher-than-industry inflation over the medium-term, driven by its investments in upgrading its technology.
O'Brien mentions this inflation will drive a slower-than-industry return to profitability as Southwest's revenue benefits from these initiatives will be offset by a weaker domestic pricing environment.
Several analyst firms lowered their respective price targets on the stock on Thursday. Jefferies downgraded the stock.
Price Action: LUV shares are trading lower by 4.12% at $41.82 on the last check Friday.

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