UPDATE: Bank of America Reiterates Underperform Rating, Raises PT on Southwest Airlines Co.

In a report published Friday, Bank of America reiterated its Underperform rating on Southwest Airlines Co.

, and raised its price target from $8.50 to $10.00. 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 revenue synergies are not likely to ramp until 2014. LUV's unit revenue gains lagged peers in 2012, and LUV's premium valuation may no longer be justified given its margins and growth rates no longer outpace the sector.” Southwest Airlines Co. closed on Thursday at $11.45.