Rodman & Renshaw Maintains Market Outperform Rating and $12 PT on Southwest Airlines

A report from Rodman & Renshaw reiterates its Market Outperform rating and $12 price target on Southwest Airlines

. The report states, “Southwest's latest schedules upload permits investors a full look at 2Q12 for the 1st time; capacity drives pricing of course hence our focus. The carrier continues to optimize its network to offset higher fuel prices & claw back a 15% pre-tax ROIC. Conclusion: the carrier isn't cutting enough capacity to hit its 15% ROIC in 2012, but capacity cuts that accelerate in 2Q12 position the carrier to nonetheless execute on pricing and margin expansion next summer” LUV closed Friday at $7.81.