Hudson Maintains Buy on Southwest Airlines (LUV)

Hudson is out with its report on Southwest Airlines LUV, maintaining Buy on LUV. In a note to clients, Hudson writes, "Our unchanged $17 PT is based on shares of LUV trading at 15x our 2011E EPS of $1.10. Products under construction including a new revenue management system which we believe drives growth to int'l and smaller markets, suggest the carrier is about half-way to a 5-year business model endgame. Shares likely continue trading sideways in the near-term, but with the stock trading at 11.6x our 2011 EPS, we believe there is plenty more value to be had, particularly once LUV is able to close on its merger with AAI." LUV is trading today at $12.80, up 0.08% from yesterday's close.