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

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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
Dec 2014Goldman SachsUpgradesNeutralBuy
Dec 2014Credit SuisseMaintainsNeutral
Nov 2014JP MorganMaintainsNeutral

View More Analyst Ratings for LUV
View the Latest Analyst Ratings

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

 

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