Market Overview

UPDATE: Stifel Upgrades Southwest Airlines On Attractive Entry Point

Share:
Related LUV
Why Wunderlich Is Selling ViaSat Despite Acknowledging Its Long-Term Success
After Three-Straight Lower Weeks, Can Market Break Out of the Friday Blues?
VietJet's $11.3 Bn Order With Boeing (Seeking Alpha)

In a report published Tuesday, Stifel analyst Joseph DeNardi upgraded the rating on Southwest Airlines (NYSE: LUV) from Hold to Buy, and named a $30.00 price target.

In the report, Stifel noted, “We believe the recent pullback in airline share prices offers an attractive entry point as we expect the focus to shift away from the negative data points of Lufthansa and Iraq towards the strong performance airlines are likely to report over the next few quarters.

"Out of the companies we cover that are Hold rated, we view Southwest as best positioned to benefit from this dynamic given that (1) it has the highest exposure to the strong domestic pricing environment and (2) no direct risk related to the revenue uncertainty associated with the Pacific and Atlantic markets. As a result, we are upgrading shares to a Buy rating and a $30 target price which is based on shares trading at roughly 15x our 2015 EPS estimate or 7x on an EV/EBITDAR (FY2) basis.”

Southwest Airlines closed on Monday at $26.10.

Latest Ratings for LUV

DateFirmActionFromTo
Apr 2016BarclaysUpgradesUnderweightEqual-weight
Apr 2016Credit SuisseMaintainsOutperform
Mar 2016Stephens & Co.Initiates Coverage onOverweight

View More Analyst Ratings for LUV
View the Latest Analyst Ratings

Posted-In: Joseph DeNardi StifelAnalyst Color Upgrades Analyst Ratings

 

Related Articles (LUV)

View Comments and Join the Discussion!