Market Overview

UPDATE: Deutsche Bank Upgrades Southwest Airlines to Buy on ROIC Outlook

Share:
Related LUV
Facebook, Google Make Glassdoor's List Of Top 50 Places To Work
10 Notable Stocks Trading Ex-Dividend Tuesday, December 6
IATA updates airline industry forecasts (Seeking Alpha)

Deutsche Bank upgraded Southwest Airlines Company (NYSE: LUV) from Hold to Buy and raised the price target from $11.00 to $15.00.

Deutsche Bank noted, "We are raising our rating on Southwest shares from Hold to Buy as we now believe the company is well-positioned to meaningfully improve its pretax ROIC. We think the company has turned the corner on its AirTran acquisition and should start to enjoy the fruits of various revenue (e.g. AirTran code sharing) and cost initiatives (e.g. growth of 737-800 inductions). Accompanying the P&L improvement, we think there will be further debt paydown and share buybacks. For the twelve months ended 9/30/12, Southwest's pretax ROIC was 7%."

Southwest Airlines closed at $10.91 on Monday.

Latest Ratings for LUV

DateFirmActionFromTo
Nov 2016CitigroupInitiates Coverage OnBuy
Oct 2016JP MorganUpgradesNeutralOverweight
Oct 2016BernsteinInitiates Coverage OnOutperform

View More Analyst Ratings for LUV
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Upgrades Intraday Update Analyst Ratings

 

Related Articles (LUV)

View Comments and Join the Discussion!