In a report published Friday, Sterne Agee analyst Jeffrey A. Kauffman reiterated a Buy rating and $15.00 price target on Southwest Airlines Co. LUV.
In the report, Kauffman noted, “LUV reported March traffic results; Flat March PRASM implies lower than expected 1Q PRASM. LUV estimates that March PRASM was roughly flat YoY. Given January and February's PRASM increases of roughly 2%, this implies 1Q PRASM of about 1.3%. RPMs rose 30 bps YoY in 1Q on a 60 bps increase in ASMs, for a load factor decline of 20 bps from 77.3% in 1Q12 to 77.1% in 1Q13. We are lowering our 1Q estimate slightly from $0.03 to $0.01 on lower PRASM, offset slightly by lower fuel expense. The ~1.3% increase in 1Q PRASM is roughly 160 bps below our prior forecast of 3%. The PRASM impact is partially offset by lower fuel price, which has trended lower than our prior forecast. The net effect is a $0.02 reduction in our 1Q estimate from $0.03 to $0.01. On this basis, we are also reducing our 2013 estimate from $1.08 to $1.06.”
Southwest Airlines Co. closed on Thursday at $12.57.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in