UPDATE: Bank of America Upgrades Southwest Airlines on Multiple Value Drivers Ahead

In a report published Thursday, Bank of America analyst Glenn D. Engel upgraded the rating on

from Neutral to Buy, and raised the price target from $18.00 to $23.00. In the report, Bank of America noted, “LUV consistently operates a low-cost, reliable, worker-and-customer-friendly airline with the industry's strongest balance sheet. The acquired AirTran offers an attractive new city presence in Atlanta, though integration will not be complete until 2015. LUV's margin and valuation premium have evaporated in recent years, but attractive growth opportunities abundant in 2015 and relative margins and multiples could start to improve again.” Southwest Airlines Co. closed on Wednesday at $17.97.