Market Overview

UPDATE: Morgan Stanley Reiterates on Southwest Airlines on Multiple Challenges Ahead

Share:
Related LUV
4 Critical Debates Airline Investors Are Having
Most Of Credit Suisse's Top Investment Ideas For 2016...In One Place
Following Alpha: Egerton Capital - Q4 2015 Review (Seeking Alpha)

In a report published Monday, Morgan Stanley analyst John D. Godyn reiterated an Underweight rating on Southwest Airlines (NYSE: LUV), and raised the price target from $21.00 to $23.00.

In the report, Morgan Stanley noted, “Though LUV has historically benefited from a significant unit cost advantage vs. peers, we've seen this advantage erode over time amid elevated fuel prices, cost inflation while slowing capacity growth, legacy airline restructuring activity, and the emergence of New Guard low-cost carriers with even lower costs. Furthermore, we believe LUV faces an elastic demand curve, limiting its relative participation in rising industry fares - as such, we are UW LUV.”

Southwest Airlines closed on Friday at $23.18.

Latest Ratings for LUV

DateFirmActionFromTo
Feb 2016JP MorganMaintainsOverweight
Jan 2016Credit SuisseMaintainsOutperform
Jan 2016Credit SuisseMaintainsOutperform

View More Analyst Ratings for LUV
View the Latest Analyst Ratings

Posted-In: John D. Godyn Morgan StanleyAnalyst Color Price Target Analyst Ratings

 

Related Articles (LUV)

View Comments and Join the Discussion!

Get Benzinga's Newsletters