Raymond James Turns Bullish On Southwest Airlines

Raymond James analyst Savanthi Syth upgraded Southwest Airlines Co LUV to Strong Buy from Outperform and lowered the price target to $55 (an upside of 56%) from $57.
The analyst states that the revised U.S. airline estimates reflect a stronger near-term revenue trend, stubbornly higher fuel prices, anticipated demand softening, and planned and expected capacity growth moderation.
Related: Raymond James Shakes Up Ratings & Price Targets On Several US Airlines
The analyst views the recent pullback as an attractive entry point.
Syth mentions that Southwest will retain its position of strength, including a best-in-class balance sheet and cost-benefit from a very attractively priced fleet order.
She believes its relative position can improve as current initiatives should enable LUV to capture a more significant share of corporate revenue, including through up-sell.
Price Action: LUV shares are trading lower by 1.16% at $35.22 on the last check Thursday.

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