Deutsche Bank Maintains Hold on Southwest Airlines
Deutsche Bank is out with its report today on Southwest Airlines (NYSE: LUV), maintaining Hold.
In its report, Deutsche Bank writes, "LUV reported Sep Q diluted EPS of $0.15 (ex-specials) which exceeded both our $0.12 forecast and $0.14 consensus. Underlying this result was a 6.6% operating margin, which we anticipate will be middle of the pack this Q. Beyond high energy prices, we think costs associated with the AirTran merger, maturation of its workforce, and lack of exposure to high growth markets are weighing on profitability. We maintain our Hold rating as we believe the synergy ramp-up is more gradual than previously anticipated."
Deutsche Bank maintains a $9 PT on LUV.
At the time of posting, shares of LUV were trading pre-market at $9.25, up 1.65% from Thursday's close.
